More funds earmarked to reduce unemployment
Updated at 4.02pm: Financial Secretary Henry Tang Ying-yen on Wednesday announced that the government would allocate more money to help reduce unemployment in Hong Kong.
Mr Tang said in his Budget address that reducing the jobless rate was one of the territory's most important challenges. But this would take time.
'As a long-term solution, we should promote Hong Kong's economic restructuring, become more competitive, and broaden and deepen our markets. With further improvement in our economy and an increase in investment, more employment opportunities will follow.'
The Financial Secretary said labour organisations had discussed their concerns about Hong Kong's historically high unemployment rate - which is over seven per cent.
'They are worried this situation might not improve despite an economic recovery. Actually, this phenomenon is not unique to Hong Kong. As globalisation intensifies competition, manufacturing industries and even some service industries will move to other competitive locations that have lower costs, giving rise to job losses,'' he said.
Mr Tang noted that in the policy address in January, Chief Executive Tung Chee-hwa had announced some short-term measures to reduce unemployment. These measures would now be extended.
'I have obtained the approval of the Finance Committee to grant about $1.2 billion to extend more than 11,000 temporary jobs, to provide young people with opportunities to gain work experience and enhance skills through training and to assist them to become self-employed. I have also earmarked $50 million to establish a Youth Sustainable Development and Engagement Fund.'
Mr Tang said the government would also improve its employment and training services and crack down on illegal labour.
