In this piece of coursework, I aim to investigate the changes the IT industry has caused in the labor market in Hong Kong and what effects it will cause in the future as well.

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Hiu Yee CHUNG 11D

INTRODUCTION

AIM:

In this piece of coursework, I aim to investigate the changes the IT industry has caused in the labor market in Hong Kong and what effects it will cause in the future as well.

METHODOLOGY

I will use primary data such as a questionnaire to give me an idea what people think about introducing the IT industry and also secondary data such as government’s statistics and newspaper articles to provide me with background knowledge.

ANALYSIS

DEMAND

The Past Trends

From being a small fishery village in the 1950’s to the blue-collar based workers in the 1970’s to the present well-known trading metropolis in Asia, Hong Kong has experienced two industrial revolutions.  

In both changes, there is an obvious drop in employment rate in one industry while a rise in the other.  For example, from the government’s statistics (ref. Appendix 1 and Figure 1) we can see that in the 90’s, the industries with the largest decrease and increase in employment are manufacturing and wholesale/retail respectively.  Hence, it illustrates the diminishing of the secondary sector and emergence of the tertiary.

Hence we can see that at present, the secondary sector is disappearing and part of the reason is because since technology is capable of replacing workers, the demand for manual labor has decreased.  Since they are not needed anymore, the people who originally own manufacturing skills will now be considered as “unskilled” and earn a lower wage.  This is because skill, as well as gender, qualifications, experience etc. is a very important factor when considering wage levels and hence those with valid skills will earn a higher wage than those who do not.

I.T. – Another Industrial Revolution

Now, there seems to be a fourth sector of industry coming in and that is the IT industry.  The entrance of this new industry is called the third industrial revolution where technology will gradually wipeout human labor-intensive posts such as clerks, secretaries, receptionists etc. This can be proved from the results of my survey.  (A sample of my survey is attached Appendix 4) (ref. Fig 2)

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Fifty-seven percent of the people surveyed claimed that they have participated in IT retraining programs, hence this proves the pressure involved when IT is introduced.  

This pressure can again be proved by another question from my survey i.e. “Has the emergence of the IT industry every caused insecurity about your job?”  ( Appendix 4 and fig. 3) 

The staff who manage to stay in the firm will all be of high managerial status where all they have to do is to make major decisions where technology still cannot do.  However, this will mean high unemployment ...

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