There will be a mismatch between manpower requirements and workforce skills by 2007, according to the key findings of "Manpower Projection to 2007", an assessment of the manpower demand and supply situation in Hong Kong.

The study was carried out in 2002 and early 2003 to assess, on the basis of Population Census 2001 and related projections, the developments in our economy and their impact on the labour market.

Like the manpower projection study 2005 conducted in 2000, the present study aims to gain a clearer picture of Hong Kong's future manpower needs with a view for better manpower planning and development. 

Government moves in right direction

Permanent Secretary for Education & Manpower Fanny Law said that the broad trends of manpower demand and supply in the new report were close to the findings of an earlier survey for 2005. It reaffirmed that the measures the Government introduced in 2000 to upgrade the quality of the manpower were in the right direction.

As in the case of the earlier study, the 2007 review indicates that there will be a mismatch between job requirements and workers' qualifications.

There will be a shortage of manpower supply at the "post secondary" and "first degree and above" levels estimated to be about 65,200 and 36,500, respectively. At the "lower secondary and below" and "upper secondary" levels, there will be 133,500 and 98,000 respectively surplus workers.  

In light of this, Mrs Law said the department will continue its efforts to upgrade the educational attainment of the workforce so as to prepare them to take full advantage of the new job opportunities that may arise.

More students furthering their education

In response to the projected manpower shortfall at "post secondary" and "first degree and above" levels, Mrs Law said that good progress has been made since the Government announced in 2000 a policy to support the progressive expansion of education opportunities at the post-secondary level.

"We are pleased that the participation rate for post-secondary education has increased from 33% of the relevant age group in 2000/01 to 42% in 2002/03 with more and more self-financing post-secondary programmes coming on stream," she said.

In 2003/04, the participation rate will be more than 48%, she added, as 18 institutes offering 113 full-time accredited self-financing degree and sub-degree courses will provide more than 12,000 places.

"We shall continue to work towards our target of achieving 60% participation by 2010.  Also, we plan to increase first degree places at second and third-year from the 2005-08 triennium to provide articulation for sub-degree holders," she added.

Fund helps workers upgrade their skills

To help the workforce prepare for the transformation into a knowledge-based economy, a $5 billion Continuing Education Fund was established in 2002 to encourage and subsidise workers to pursue continuing education. Since then, it has approved more than 30,000 applications.

"We are reviewing the eligibility criteria and considering expanding the scheme to include degree holders," she said.

Apart from raising the overall educational attainment of the workforce, Mrs Law said the Government has also taken active steps to upgrade workers with low educational attainment to enhance their employability. Employers and employees alike have embraced the Skills Upgrading Scheme introduced in September 2001.

"It is encouraging to note that more than 16 industry sectors have taken part in the scheme and have provided upgrading opportunities for over 36,000 workers," she said, adding that the Government will invite other suitable industries to join, to benefit more workers with upgrading needs.

Industries that are important to Hong Kong's econmic development, that employ a sizeable pool of low-skill and low-education workers, and have employees and employers willing to participate in course development are welcome to join the scheme.

Retraining service demand increases

Mrs Law also noted that the demand for retraining services was on the rise.

"With the introduction of a levy on employers of foreign domestic helpers from October 2003, additional resources will be available to benefit more people," she said. "We hope to remove the existing age restriction so that unemployed persons below the age of 30 will also benefit."

On the overall direction of education and long-term measures to enhance the workforce's quality, Mrs Law stressed the importance to establish a qualifications framework, increase education opportunities and provide diversified learning options.

"We have put forward proposals on the establishment of a qualifications framework, which will be conducive to the accreditation and recognition of qualifications and promotion of lifelong learning," Mrs Law said.

"With clear and flexible progression pathways, learners can draw up their own road maps to upgrade their skills," she said.

Programmes cater to different wants and needs

Mrs Law also said that the Government has introduced various programmes in recent years to cater for the different aptitudes and aspiration of students. They include:

* subsidised education/training for all Secondary 3 leavers with effect from the 2002/03 school year;

* Project Yi Jin, introduced in 2000, to provide an alternative progression pathway for Secondary 5 school leavers;

*  Eight Senior Secondary Schools with 2,300 Secondary 4 places offering career-oriented subjects will start operations in the 2003/04 school year; and

* 12 career-oriented programmes in mainstream schools to be introduced in 2003/04 academic year.

Providing these alternative routes to young people will help provide them with greater opportunities to obtain higher qualifications, she added.

Mrs Law stressed that the ultimate answer to meeting the manpower needs of our workforce lay in the education reform to nurture young people who have strong communication skills, are innovative and committed to Hong Kong, and have the aptitude and skills for lifelong learning.