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Unemployment Roundtable

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Mind the Gap! - Government Failing the People's Test

T. L. Lui & C. K. Wong

In a small-scale telephone survey carried out by the Chinese University of Hong Kong in May 1998, we asked our respondents to tell us their perception of the problem of unemployment.[1] The result was alarming. Among our 822 respondents, 93.5% of them suggested unemployment in Hong Kong was a serious or very serious issue. No doubt, unemployment had sparked public concern. Such response from the respondents was by no means an emotional reaction to media reportage of economic recession and rising unemployment. Rather, unemployment was found to be an issue close to their everyday life. About 60% of the respondents had friends or relatives currently unemployed at the time of interview. And among those respondents who knew friends and relatives in unemployment, their jobless acquaintance ranged from 'one to two persons?(37.7%) to 'three or more?(59.7%). Their perception that unemployment was a salient social problem was firmly grounded in their real life experience. Nowadays, unemployment touches many people's lives.

    When the respondents were asked to comment on the performance of the HKSAR government in tackling problems of unemployment and poverty, the average scores (10 denoted 'full marks?and 5 'pass? they had given to a list of statements were as follows:-

  • Government's performance in tackling unemployment - 3.76

  • Government's performance in tackling poverty - 3.98

  • Government's efforts in addressing the problem of unemployment through retraining - 4.01


In short, in the eyes of the public, the government simply failed to cope with the rising problems of unemployment, the widening of income inequality, and poverty. Government's
performance was considered least satisfactory in addressing the issue of unemployment. Though the average score went up to 4.01 in the respondents?assessment of retraining as a strategy to tackle unemployment, it was still significantly below the passing grade.

    People were not at all happy with the government's
slow and passive reactions to problems arising from the longer term structural changes and the recent downturn of the economy. Despite their disappointment with the government's performance, about 25% of our respondents still perceived the SAR government as the most effective agent to deal with the problem of unemployment. Also, about the same proportion of the respondents suggested that the SAR government should assume a leading role in designing new initiatives to address the problem of unemployment and other related social issues. However, these survey findings did not suggest a change in people's belief of personal efforts and determination in coping with difficult situations. Indeed, more than half of the respondents saw individuals?own efforts as the most effective strategy to cope with a jobless environment.

    Previous studies of work ethics and social mobility in Hong Kong also confirmed that the people of Hong Kong emphasized self-reliance and individuals?efforts of coping with hardship and making success. There were few signs suggesting an erosion of the popular belief of 'personal efforts plus luck = success? People might become pessimistic in an environment of drastic economic downturn. But so far the fear of promoting welfare dependency and overloading the government by increasing welfare provisions continued to be heard in public debates about the need of a welfare safety net in Hong Kong. The increase in the number of recipients of government welfare provisions was more a consequence of structural changes in the labour market and demographic compositions than of a change in people's
mentality.[2]

    What was evident from our survey findings was not a psychological shift towards dependency. There were rising expectations of a more active and positive role of the government in dealing with problems arising from structural changes in the economy (for instance, the hollowing-out of manufacturing industries) and demographic changes in the social structure (for example, an aging population). But people did not expect the government to become the job provider. Rather, the government is expected to assume a positive role in the creation and opening of opportunities in order to provide individuals with the socio-economic environment to strive for their own survival and welfare.

    Many people are happy to be self-reliant and self-supporting. But not all of them have the means and opportunities to stand on their feet in a period of economic recession. People expect the government to act positively. That is, they expect new initiatives from the government to attend to the needs of the needy and to create an environment conducive to self-reliance and personal efforts for success. To suppress the rising expectations is misreading people's
mind and will simply miss the point.

Notes:
[1] A telephone survey on people's
attitudes towards unemployment, poverty and social policy was carried out in May 1998. The samples were randomly selected and 822 interviews were completed. The response rate was 51.6 per cent.
[2] The issue of welfare dependency was a topic thoroughly discussed in a policy forum on 'Unemployment, Poverty and Social Policy?organized by the Faculty of Social Science and the Hong Kong Institute of Asia-Pacific Studies, The Chinese University of Hong Kong, held in May 1998. Guest speakers from governmental as well as non-governmental organizations shared the view that there was no evidence of a psychology of welfare dependency among CSSA (Comprehensive Social Security Assistance) recipients.


Dr. Tai-lok Lui is an associate professor in the Department of Sociology and Dr. Chack-kie Wong is an associate professor in the Department of Social Work, the Chinese University of Hong Kong.


Pressure on CSSA

Nelson W. S. Chow

The worsening unemployment situation since the end of last year has resulted in an unprecedented jump in the number of unemployed persons applying for financial assistance.

    For almost three decades since the introduction of public assistance (now Comprehensive Social Security Assistance - CSSA) in 1971, the unemployed have remained at only a few percent of the total number of cases. But now, out of 200,000 eligible CSSA cases, the unemployed are accounting for more than 12%, or 22,000 cases. And the more than 100% increase of CSSA cases attributable to unemployment has occurred in less than a year.

    While the huge expenditure on CSSA predicted to exceed $11 billion for 1998-99 cannot totally be accounted for by the increase in unemployed applicants, the two are no doubt closely related. Since expenditure on CSSA is an open-ended commitment of the government and cannot in any way be reversed, it will continue to increase as long as more residents in Hong Kong are financially unable to support themselves.

    The increase in expenditure on CSSA not only implies a greater outlay for the government's
coffer, but also a stoppage to the expansion of other social welfare services. It is obvious that in the coming year, the government will have little to spare for other social welfare items, notwithstanding its earlier commitments to their expansion and improvement.

    The welfare sector, as well as the political parties standing for the welfare of the people, will of course be displeased with the slowing down of the social welfare development. However, unless the government is prepared to have a bigger budget deficit, there seems little it can do to strike a compromise with those pushing for a larger share of public resources for social welfare.

    A more rational approach is for the government to sit down with the non-government organizations(NGOs) responsible for the delivery of social welfare services to work out a more effective and efficient way of deploying existing resources. This is of course not easy, in view of the diverse interests of the government and the NGOs. But only the recipients of social welfare services will suffer if the two sides come to a stalemate.

    There is no way for the government to stop eligible residents from coming forward to apply for CSSA. The provision of a basic living is also too important to the society's
stability for the government to ignore. Now is therefore the time for the entire social welfare sector to forget temporarily about expansion and to concentrate on improving better services within limited resources.


Prof. Nelson W. S. Chow is the Chair and Professor in the Department of Social Work & Social Administration, The University of Hong Kong.


Unemployment Triggers Need for More Services

Joyce Chang

In mid 1998, Caritas - H.K. Social Work Services published two survey reports on the community-wide "Unemployment Problem".

    In the survey done by Caritas Kowloon Community Centre in June 1998, 80% of the respondents (1948 member families) reflected that the recent unemployment wave had affected them in many ways: (1) reducing recreational spending; (2) cutting overseas trips; (3) minimizing overall family expenses; (4) decreasing family income; (5) lowering the quality of life and (6) increasing emotional stress. The last one, given the lack of appropriate services, may lead to serious family and societal problems. Fifteen percent of the families interviewed reflected that they had to work longer hours, and experienced increased family conflicts. In fact, among these interviewees, 15.3% had unemployed family members.

    The other survey was conducted by Caritas Community Development Service. Twenty four lower-income workers were interviewed in January 1998. Half of them had unstable job situations, and 70% had wages inadequate to make ends meet. In May 1998, 41 unemployed workers were interviewed: 20 of them became unemployed due to company close-down, 21 were bread-winners and 19 experienced inadequate income to meet family expenses. Over 56% had been unemployed for 1 to 3 months. From these findings, it was noted that unemployed women were more ready to express their unemployment problem and to seek outside assistance. Unemployed men tended more to conceal their problem and to rely on themselves to resolve it.

    In response to all these, what can be expected from the government and non-government agencies?

    The first aforementioned study revealed that the public welcomed the government's
rental reduction for stalls under the Housing Authority and the two municipal councils. However, they had a low level of confidence in those re-training programmes or various job-matching services provided by the Labour Department.

    Besides, in view of the increasing seriousness of the unemployment problem which will surely create more personal stress, family conflicts and violence affecting the stability of society in the long run, it is recommended that the government allocates funds to subsidise agencies to provide more comprehensive services.

    District-based unemployment support service units should be set up to provide services which may include individual and group counselling, mutual support in job searching, job-matching services and skill re-training and job-interview skills. Activities in the counselling units can equip workers with knowledge and skills in managing stress and depression, stimulate motivation to search for jobs and enhance self-confidence in handling crisis situations.

    A hotline service should be set up to provide emotional support to those unemployed and their families. This service can also reflect the needs and problems of these people periodically to the government and stimulate further concrete actions and plans to assist them.

    An internet service should be set up to serve the recent high percentage of the unemployed middle-management group, to help them assess and release their stress, provide job market information and community supportive resources.

    Finally, there should be training programmes for the unemployed to familiarize them with jobs in a new field. The government should also try to create jobs through subsidizing the formation of new Co-ops and to allow split jobs.

    Confronted with such an adverse economic situation in Hong Kong right now, the government should widely publicize the existing and new services available to the unemployed. This is of utmost importance.

Ms. Joyce Chang is the Head of the Social Works Division, the Caritas - H.K


.HKPRI Public Confidence Index
(July 1997- September 1998)

The Hong Kong Policy Research Institute (HKPRI) has been regularly conducting territary-wide Confidence Index Surveys since April 1996. The indices aim to measure people's confidence in the political, economic and social development and related issues.

Political Confidence
    The confidence index on the "Performance of SAR government" dropped to a new low in July 1998, so did the "Performance of the Chief Executive". The public was generally dissatisfied with the government in its ways of handling various issues such as the high interest rate, the housing policy and the series of health hazards. In early September, the seven new financial measures introduced by the Hong Kong Monetary Authority which had strengthened the linked exchange rate system and reduced the volatility of local interest rate helped to boost the index to a recent high (107.3). In late September, however, it returned to a low point (74.9). This shows that people's confidence in the government is still in a trough.

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Economic Confidence
      The confidence index on "Economic Prospects of Hong Kong" dropped to 65.1 in July 1998 as against 115.4 in July 1997. The confidence index on "Maintenance of Livelihood" was worse, dropping to 63.2 in July 1998 as against 104.5 in July 1997. However, in early September, both indices soared to 85.5 and 84.6 respectively. Since the introduction of the new measures by the Hong Kong Monetary Authority, people have regained some confidence in economic prospects.

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Social Confidence

    The indices reflected problems in livehood issues. Indices on "Quality of Life" and "Family Relationship" have declined sharply in July 1998 as compared with those in July 1997.

    This reflects that the economic well-being of individual households has deteriorated, thus affecting the overall confidence. The indices have not risen much in September even though the confidence in political and economic have improved.

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