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The Committee notes with interest the detailed information provided by the Government in its report covering the period ending in May 2009 and the replies to the 2008 direct request.

Articles 1 and 2 of the Convention. Employment trends. The Government reports that, in 2007, the labour market continued to show encouraging performance and the economy expanded at an above-trend pace. During this year, the unemployment rate dropped to 4 per cent and 3.4 per cent, respectively, in the third and fourth quarters of the year, while the underemployment rate went down to 2.2 per cent and 2.1 per cent in the two quarters, respectively. Total employment also continued to grow strongly in both quarters by 1.7 per cent. These favourable trends continued during the first half of 2008. The unemployment rate further decreased to 3.2 per cent in June and August 2008, the lowest level in the last ten years. Since September 2008, the rapid deterioration in the business environment following the abrupt escalation of the global financial crisis led to weakened demand for labour towards the end of 2008. In 2009, the labour market conditions worsened and unemployment stood at 5.2 per cent in the first quarter. In the first quarter of 2009, total labour force increased by 1.1 per cent, whereas total employment recorded a 0.8 per cent contraction over the preceding year to 3,510,000 workers. The Committee invites the Government to include in its next report information on the impact of the measures mentioned to generate employment. The Committee also requests the Government to continue to provide information on the situation, level and trends in employment and unemployment disaggregated by sector, age and gender.

Measures taken in response to the global crisis. The Committee notes that the Government is tackling the challenges of the global financial crisis and its contagious effects in various economic sectors. The Government reports that it is stepping up its efforts to stabilize the financial system, support enterprises and preserve employment. In 2008, the Task Force on Economic Challenges (TFEC) was established to monitor and assess the impact of the financial crisis on local and global markets, and to provide timely evaluation of its impact on the economy and major industries of the Special Administrative Region of Hong Kong. In December 2008, the Government announced measures to tackle the economic slowdown, including the creation of over 60,000 jobs through expediting infrastructure projects, advancing recruitment of civil servants and creating temporary and other jobs. In total, the measures identified by the TFEC and announced by the Government were expected to create over 122,000 jobs and internship opportunities. The Committee also notes that greater emphasis will be placed on the construction sector and on young workers, the hardest hit from the sectoral and age bracket perspectives. Besides creating jobs directly, the measures will also provide training and job opportunities specifically to those in need, including young people, graduates, women, the middle-aged and people with disabilities. The Committee invites the Government to provide in its next report information on the participation of the social partners in the design and implementation of an active employment policy to overcome the negative effects of the crisis.

Strengthening employment services. The Committee notes that the Labour Department received 1,251,678 job vacancies and achieved a total of 278,566 placements, representing an increase of 29.3 per cent and 15.9 per cent respectively, over the corresponding period in 2005–07. The Committee also notes that the Labour Department organizes large-scale job fairs at different locations within the territory to respond to the recruitment needs of employers and to offer more convenient services to jobseekers. The Labour Department also launched the Work Trial Scheme in June 2005 to enhance the employability of jobseekers who have special difficulties finding employment. As of May 2009, 2,542 jobseekers were placed into work trials. The Committee invites the Government to report on the contribution made by the public employment services in order to achieve full employment.

Youth employment. The Committee notes that the Labour Department is concerned with boosting the employability of young people and is implementing different programmes and services, including setting up One-stop Youth Employment Resource Centres to provide comprehensive support for young people in career development. The Committee also notes that the Employees Retraining Board (ERB) has expanded their target audience and now offers their services to residents aged 15 and above with education at the sub-degree level or below in order to enhance their employability by upgrading their skills and improving their competitiveness. The Committee invites the Government to include information on the impact of the measures taken to respond to the needs of young workers who have difficulties in finding lasting employment.

Vulnerable categories of workers. The Committee notes that the Selective Placement Division (SPD) of the Labour Department provides personalized employment services, including basic skills assessment, vocational guidance and job-matching services to people with disabilities. The SPD also organizes public education and publicity activities to promote community acceptance of people with disabilities and to enhance their employment opportunities. As of May 2009, 5,300 jobseekers with disabilities had participated in the Self-Help Integrated Placement Service, which was launched in 2000 to encourage and to help them be more proactive and independent in their job search. To this end, the service, inter alia, equips them with the necessary knowledge on the job market situation, job search channels and interviewing techniques. The programme made a total of 16,490 self-initiated job applications. The Committee also notes the results of other programmes and services provided by the Social Welfare Department, including the Sheltered Workshops and Integrated Vocational Service, Supported Employment, Small Enterprise Project, the Job Training Programme for People with Disabilities and the On-the-Job Training Programme for Young People with Disabilities. The ERB is also offering a wide range of generic skills training to enhance employability of trainees with disabilities and trainees who recovered from industrial accidents. The Government reports that the Vocational Training Council (VTC), which aims to cater to the specific needs of ethnic minorities, has been organizing various types of vocational education and training courses for them. Further, within the Vocational Development Programme, there is a specific modality of Ethnic Minority Project. The Committee notes that the ERB is providing training courses to assist ethnic minorities in Hong Kong to gain working opportunities through appropriate training and employment services. In 2008 and 2009, the ERB reserved 2,000 training places per year to offer vocational training for ethnic minorities. The Construction Industry Council (CIC) trainee recruitment programmes have also been extended to ethnic minorities. The Labour Department launched the Employment Programme for the Middle-aged to assist the unemployed, aged 40 or above, to secure employment through the provision of a training allowance to encourage employers to hire them. Between 2003 and 2009, the Programme placed 43,952 persons into employment. The Committee invites the Government to continue to provide information on the impact and results regarding access to productive employment for persons with disabilities and ethnic minorities.

Vocational training and education policies. The Committee notes the training programmes within the Manpower Development Scheme operated by the ERB. Until May 2009, over 300 types of courses were offered through the training bodies at over 340 centres. The overall average placement rate for the trainees of the training programmes was around 80 per cent for the reporting period. The Committee notes that the ERB also offered 15 self-employment training courses between June 2007 and December 2008 and that, of the 403 trainees who completed these courses, 160 started their own business, 143 have been preparing for business start-up, 78 were employed while 22 chose to further their studies. The Government reports that the VTC provided some 46,500 study places for its post-secondary 3 and 5 level courses in the 2008–09 academic year. In line with the Government's policy to alleviate poverty and to foster harmony in the community, the VTC will continue to provide vocational education and training programmes to the target groups including the non-engaged youths, ethnic minorities, unemployed adults and people with disabilities and learning difficulties. The Committee also notes that the CIC continues to train young people and displaced workers who wish to join the construction industry at the operative, craftsman, technician and supervisory levels. The CIC is responding to the expected strong demand for skills training as unemployment has started to rise and there are ten infrastructure projects planned in the coming decade. The Committee also notes the training programmes offered by the Clothing Industry Training Authority (CITA) and the Hong Kong Productivity Council, who organized about 1,000 training programmes. Please continue to provide information on the measures taken to encourage workers to participate in training programs so that they strengthen their ability to adapt to changing market demands, increase their employability and entrepreneurship. The Committee also invites the Government to provide information on how training and education policies are coordinated with the employment policy.