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[Talent shortage. Three] The industry solidifies the economy, the old-fashioned emerging talents are unemployed|01 Week

2021-02-02T07:19:34.918Z


"Before you took the "sandpaper" (graduation certificate) of the University of Hong Kong, you almost "win the sun"!" He Shunwen, the principal of Hang Seng University in Hong Kong, sighed. "In the past there were only so few college students, but now they are not."


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Written by: Yang Yingwei

2021-02-02 15:06

The last update date: 2021-02-02 15:13

"Before you took the "sandpaper" (graduation certificate) of the University of Hong Kong, and you almost "win the sun"!" He Shunwen, the principal of Hang Seng University in Hong Kong, sighed. "In the past there were only so few college students, but now they are not." Hong Kong in the past, Having a university degree means having a high-paying job; but now in Hong Kong, graduating from university may not be able to find a good job, and even if you find it, you may not have a satisfactory salary.

If understood by ordinary market thinking, this phenomenon will be attributed to the "devaluation of academic qualifications" caused by the increase in university penetration.

Despite the fact that Hong Kong's higher education penetration rate is not high, in developed economies with high per capita education levels, such as Japan and South Korea, there will not be such a strange phenomenon as Hong Kong.

What is the crux of Hong Kong?

Why can't the human investment in studying and receiving higher education show value in Hong Kong?

To undertake the above:

[Talent shortage.

1. The traditional economy suppresses elite thinking and hinders people from using their talents

[Talent shortage.

2) Can the elite go to university?

Limited places cut the efficiency of cultivating talents

Manpower shortage stems from mismatch of supply and demand

The provision of higher education is understood by society as an investment in human capital for school-age youth.

Every young person enrolling in a public institution needs nearly 200,000 yuan in tuition to complete a four-year degree, and the government will subsidize more than 800,000 yuan.

The government and families have invested nearly one million yuan. Of course, they hope to improve the professional knowledge level of young people and hope that they can contribute to society in the future.

But what is the truth?

The data tells us that the original investment of nearly one million yuan did not bring about a significant increase in salary, or even the promised career.

According to statistics from the Hong Kong Census and Statistics Department, from September to November 2020, the number of unemployed persons with tertiary degrees was 61,000, accounting for a quarter of the total unemployed population.

According to the 2016 mid-term census, the median income of people with a degree is 12,000 yuan, which is only two thousand yuan behind the median income of high school graduates, while the median income of associate degree programs is 10,000 yuan, which is comparable to that of high school graduates. Graduation is no different

(Table 4)

.

Devaluation of academic qualifications or study useless?

The truth is not that simple.

This phenomenon that human capital cannot be realized in the labor market is ultimately due to the mismatch of supply and demand in the labor market in Hong Kong.

This mismatch of supply and demand can be divided into two phenomena: one is the unfair salary structure, and the other is the simplification of job demand.

In the final analysis, both phenomena are caused by the industrial structure dominated by the traditional economy.

The consequence of this structural contradiction is the misalignment of the education system and the labor market, leading to a serious shortage of middle-level scientific and technological talents most needed in the innovation economy.

Professor Tang Xiwei of the School of Economics and Business Administration of the University of Hong Kong wrote the article "Hong Kong's Need for the Third Economic Transition" (hereinafter referred to as "Economic Transition") in the "Hong Kong Economic Policy Green Paper 2021" recently released by the school, pointing out that local university students are For a stable and high salary, choose to study medicine, law or business administration instead of science or engineering, which can help drive economic growth. "An important reason is that the labor market does not provide science and engineering graduates with opportunities to apply their knowledge."

The labor market does not provide opportunities for science and engineering graduates to apply what they have learned.

(Profile picture)

Unfair distribution leads to devaluation of academic qualifications

In terms of the overall environment, Hong Kong people's salaries have already fallen into a long-term stagnation of growth.

Deng Xiwei pointed out in the article "Economic Transformation" that although Hong Kong's per capita GDP has increased by 89% in the past two decades, the median household income has increased by only 63% over the same period, while food prices have increased by more than 80%, and housing expenses have increased by more than 80%. But it increased by 306%.

In short, in the past two decades, although the overall economy of Hong Kong has been booming, every family in Hong Kong has less and less money at their disposal and is under pressure on food and housing.

Under the general stagnation of income growth, although higher education degrees have increased the human capital of graduates, it is hard to say that it has brought matching real salary increases in the labor market.

According to the census data, the median income of high school, diploma/certificate, sub-degree and degree graduates in the 20-24 age group is only a thousand yuan difference

(Figure 2)

, showing that young people who just graduated When looking for jobs, the difference in academic qualifications cannot bring about a significant salary gap.

At the same time, the overall median income of young people seems to have steadily increased with urban development, but compared with consumption inflation, real income has fallen.

Young people aged 25 to 29 who graduated from a post-secondary degree had a salary increase of 12% from 2011 to 2016, while those who graduated from an associate degree had a salary increase of 27% over the same period.

According to statistics from the Census and Statistics Department, the composite consumer price index has increased by 26% in the past five years. That is, in the past five years, the salary increase of young people graduating from a tertiary degree cannot catch up with inflation, while the salary increase of sub-degree graduates has only exceeded inflation over the same period. .

In contrast to the overall and long-term income stagnation, Hong Kong’s GDP rose like a rocket before the epidemic, which grew by 52% between 2011 and 2016.

This can't help but make people think, where has the labor value created by Hong Kong people gone?

Where did the government and family invest in human capital?

Why does salary not reflect the value of these investments?

It turns out that behind the depreciation of academic qualifications is not that the degree is worthless, but that there is a problem with the entire salary distribution structure.

The single industrial structure of Hong Kong has led to a mismatch between the supply and demand of human resources, which has led to a shortage of manpower in the emerging economy.

(Getty Images)

Unfair pay restricts science and innovation talents

The reason is that Hong Kong's single industrial structure has weakened the fairness of the initial distribution (that is, salary).

Tang Xiwei analyzed in "Economic Transformation", "Hong Kong has long been plagued by structural economic problems, and the focus is on a small number of service industries." Four pillar industries, namely financial services, tourism, trade and logistics, professional and industrial and commercial support Services account for about 60% of GDP.

Looking at the median income data for the entire 20 years from 1996 to 2016, he commented: “Among the four pillar industries, only the financial industry has recorded wage growth. The median wages and growth rates of the other three pillar industries The performance is much inferior, and sometimes even recorded negative growth.” In other words, most of the economic value generated by the city in the past has flowed into the pockets of financial practitioners.

In the past five years, the financial dominance has remained unchanged.

Most young people choose to study business, and business graduates also occupy high-paying industries.

According to the "Investigation Report on Employment Status of College Students in 2020" released by the job search website JobsDB, among the industries with the highest starting salary, except for "Medical and Pharmaceutical" ranked No. 1 and "Information Technology and Communication Technology" ranked No. 9 for science and engineering graduates Almost all other occupations are occupied by "real estate finance" or "professional services"

(Table 5)

.

The report also pointed out that for two consecutive years, the government and public organizations have become the first choice for employment among the students surveyed, accounting for 14%; followed by banking (8%), advertising and public relations and market affairs (6.4%).

Education (6.1%) and medical treatment and pharmacy (5.8%) ranked fourth and fifth respectively.

Former President of the University of Hong Kong, Xu Lizhi, pointed out that salaries and outlets are important reasons for students to "choose subjects". Although the government strongly encourages the development of science and technology, students have no incentive to study related subjects. "We do not have an economic structure to absorb high-tech knowledge. Of the graduates, so all the classmates went to study finance and economics, and felt that they would definitely find a job.” Taking the employment salary statistics of JobsDB as an example, the average starting salary of university graduates studying "information technology" is 16,618 yuan, although Slightly better than other non-professional industries, but the gap is still quite obvious compared with medical, disciplined forces, and administrative directors. Compared with investment banking and management interns, it is far behind.

Why is the pay gap so obvious?

Because real estate finance restricts the development of emerging industries and reduces the space for labor costs with land rent costs, Hong Kong has been unable to transform and develop diversified industries for a long time, and is still deeply trapped in the traditional economy.

Xu Lizhi, former president of the University of Hong Kong, pointed out that salaries and career paths are important reasons for students to "choose subjects". Although the government strongly encourages the development of science and technology, students have no incentive to study related subjects.

(Getty Images)

This malformed industrial structure and the resulting unfair distribution of compensation have not only affected the aspirations of young people, but also restricted the cultivation of innovative talents in Hong Kong.

Although the government has vigorously promoted innovation and technology in recent years, encouraging young people to take information technology-related courses, and many young people are also very interested in science, but in the end, not many students choose it as a university major or even a future career.

According to the survey and statistics of Lingnan University's research report "Cultivating Hong Kong Youth's Technological Innovation Literacy", more than half of secondary school students are interested in science and related subjects

(Figure 3)

.

However, according to the statistics of the number of students in post-secondary courses in self-financing institutions in the 2019/20 academic year, the number of students enrolled in information technology courses is about one-tenth of the number of students in business and management courses

(Table 6)

.

With such concentration of young talents in traditional elite disciplines such as medicine and business, it is difficult for Hong Kong to adapt to the current competition in the knowledge-based economy centered on technology.

Industry mismatch derives "reading is useless"

Chen Weiyi, the vice president of the Chinese University of Hong Kong, predicted that Hong Kong will soon face a shortage of research talents: "Scientists do not know everything! Research on whether "sharp" is not based on scientists themselves, but on "assistants." He said. "Assistants" are students who enter the laboratory, because "a laboratory may only have one professor, but there are many students and researchers." This is why Shenzhen is now vigorously attracting overseas universities to run schools in Shenzhen.

In addition to the Chinese University, Shenzhen has attracted Moscow University and the University of Melbourne to run schools there in order to develop scientific research and reserve local talents.

Chen Weiyi, vice president of the Chinese University of Hong Kong, predicts that Hong Kong will soon face a shortage of research talents.

(Photo by Ou Jiale)

In Hong Kong, there are very few local young people who have devoted themselves to scientific research.

According to UGC data, in the 2019/20 academic year, the number of non-local students in postgraduate research courses in public institutions, also known as "academic postgraduates", is 6,864, accounting for 82% of the total number of students, that is, Hong Kong local There are less than 1,400 academic graduate students.

It can be seen that most of Hong Kong's scientific research investment flows to non-local talents, but from the perspective of sustainable development, non-local students may not have enough incentives to stay in Hong Kong and continue to develop, and it is difficult to contribute their wisdom to local scientific research development.

Why are local young people unwilling to continue their studies?

Because there is a strange phenomenon in Hong Kong-"reading is useless".

"You sell roasted sweet potatoes on the street, it is almost the same as doing atomic bombs in the laboratory." Li Xiaoying, director of the Hong Kong Federation of Education Workers and director general of the Hong Kong Future Education Association, said with a smile that the current salary in Hong Kong is too parallel, and university scientific research owes young people. Attraction, "If you think about it, the monthly salary of a construction worker is about 40,000 yuan, which is about the same as the salary of a university lecturer. What is the meaning of going to university?

Li Xiaoying, director of the Hong Kong Federation of Education Workers and director-general of the Hong Kong Future Education Association, pointed out that Hong Kong's salaries are too parallel.

(Photo by Huang Baoying)

Even if non-local youths who come to Hong Kong for postgraduate studies do not stay in Hong Kong for employment, they can at least return home to find another job.

However, if local young people have completed their master's and doctoral degrees and want to find employment in Hong Kong, they will find that the labor market does not provide jobs that match their degrees.

Since Hong Kong’s industrial structure relies on four pillar industries, and these four industries are traditional industries, there is not much demand for emerging scientific research talents, and it is difficult for people with high academic qualifications to find jobs that can display their talents.

"At that time, we envied the students from Taiwan and Singapore." Chen Weiyi recalled the days when he was studying abroad, telling the reason for the large outflow of scientific research talents in Hong Kong: "It's not that I don't want to return, but I can't come back. Hsinchu (Science Park), Singapore is engaged in science and technology parks, and Hong Kong is really indifferent to scientific research.” He recalled the days of studying in the United States and said: “After studying mathematics, physics and chemistry, they can return to Taiwan and Singapore to develop. We return to Hong Kong. They are all teaching, what are you doing back?"

Chen Weiyi is talking about things decades ago, but Hong Kong has not changed much so far.

Although the government is talking about the development of innovation and technology, its investment in scientific research is still lagging behind the average.

The “Recommendations for Hong Kong’s “Human Capital Investment Doubling Plan” (hereinafter referred to as the “Recommendations”) written in the “Hong Kong Economic Policy Green Paper 2021” by Cai Hongbin, Dean of the School of Economics and Business Administration of the University of Hong Kong, wrote, “Educational Research and Development In terms of expenditure, Hong Kong lags far behind. The total R&D expenditure of the industrial sector, government, and universities is only 0.8% of GDP. In contrast, the R&D expenditures of South Korea and Israel each account for more than 4.5% of GDP, and Sweden and Japan also It is above 3%, and the average rate of 2.4% in OECD member countries is three times that of Hong Kong. Even though the SAR government has increased R&D investment in recent years, the gap is still huge."

Although the government is talking about the development of innovation and technology, its investment in scientific research is still lagging behind the average.

(Profile picture)

At the same time, traditional industries have also restricted the development of emerging industries. Coupled with the government's "small government, big market" thinking, technology start-ups have no room for survival.

The government leaves the business sector to operate the economy and ignores market regulation, yet it does not know that the business sector has no incentive to promote technological innovation.

Chen Weiyi explained: "There are so few'rich guys' who invest in technology because the investment period of technology is relatively long, and secondly, they don't know enough about technology."

Under this circumstance, technology start-ups are limited by land rent and operating costs, and positions that can provide reasonable salary for scientific research talents are also lost.

Workstem is a technology-based start-up company that started in Hong Kong. It mainly provides human resources SaaS products (Software as a Service) to small and medium-sized enterprises. It also has an office in Shenzhen.

Xiao Liangqin, Operations Director of Workstem, said frankly in an interview with "Hong Kong 01", "The entire program development team of the company will be located in Shenzhen", mainly recruiting IT talents, while the office in Hong Kong is more inclined to recruit consultants and market operations because " When recruiting program developers in Hong Kong, the first is that the price is more expensive, and the second is that people are not so good." "As far as I know, this is very common (common) in Hong Kong startup companies, and many companies will be in Shenzhen. Separate technology teams."

According to the government's human resources projection report

(Table 7)

, in the five years from 2012 to 2017, the demand for manpower in the information and communications industry only increased by more than 10,000 people, which was attributable to the increase in manpower demand in the high-paying financial services, professional and business services industries one third.

The manpower demand of the information and communication industry accounts for only 3.2%, which is still a minority compared with traditional industries such as retail trade and business services.

Employment in the Bay Area fails to cure both symptoms and root causes

The government is certainly not unaware of this problem.

The "Greater Bay Area Youth Employment Program" launched in this year’s Policy Address has been implemented recently. It plans to provide 2,000 government-funded places for employment in the Greater Bay Area, of which about 700 are innovation and technology positions, and encourage Hong Kong companies to hire bachelor or Young people with a degree above go to work in cities in the Greater Bay Area with a minimum monthly salary of 18,000 yuan, of which the government will subsidize 10,000 yuan for 18 months.

It is of course a good thing to be deliberate in solving problems, but the government's "employment plan" seems to "care the symptoms but not the root cause."

First of all, the employment of young people in the "Greater Bay Area" can solve the temporary difficulties of "high unemployment," but it does not help the transformation of the industrial structure.

In the long run, compared with the high-paying financial and professional service industries, which are "near the water", the employment outlet for innovation and technology talents still has no fundamental improvement.

Secondly, the employment plan did not consider the plight of employment in other places, and its attractiveness is doubtful: taking IT talents as an example, the average starting salary is about 16,000 yuan, and there is no need to bear housing costs and holiday transportation costs; but after participating in the plan, the salary is not enough. Two thousand yuan more, but to increase the cost of renting a house and transportation in different places.

Finally, the number of places in the plan is too small to create an stimulating prospect: For DSE candidates and prospective college students, the "employment plan" that is eligible to participate after four years is hard to say, and it is impossible to reverse the preference for business in college selection , Professional atmosphere.

The "Greater Bay Area Youth Employment Program" launched in the 2020 Policy Address has been implemented recently. It plans to provide 2,000 government-funded jobs in the Greater Bay Area, of which about 700 are innovation and technology positions.

(Profile picture/Photo by Zhang Haowei)

It is far from enough to rely solely on the flow of human resources and hand over the problems of shortage of scientific and technological talents and youth employment to the Greater Bay Area.

The government should also recognize the deep-seated industrial structure problems in Hong Kong and solve the problem of insufficient demand for talents in emerging industries.

The government actively intervenes in the market to create a good soil for emerging companies, so as to create a large number of jobs, which is a good strategy to solve the employment problem.

Tang Xiwei suggested in the "Economic Transformation" that the SAR government may consider using economic incentives to attract overseas and mainland new economy enterprises to set up branches in Hong Kong. The goal is to transfer technology and knowledge and eventually create high-tech jobs in Hong Kong. The local labor cost approach encourages foreign companies to hire Hong Kong people. The relevant policy aims to attract foreign companies and help increase the local demand for scientific and technical personnel, so as to solve the talent shortage and effectively improve the technology and research environment in the medium term."

In addition, the government should start with the scientific research environment and draw a blueprint for the development of young people, so as to truly encourage young people to devote themselves to science and technology and scientific research, and become the core productivity required for the development of a knowledge-based economy.

At present, the University Grants Committee sets a fixed quota for the number of graduate students admitted to each university and department, which greatly limits the efficiency of cultivating research talents.

Cai Hongbin proposed in the "Recommendations" that the number of doctoral students in Hong Kong universities should be at least doubled; the government should establish an "Advanced Research Talents Program" to provide full scholarships for graduates of outstanding universities in Hong Kong to pursue doctoral courses in prestigious overseas universities, and establish a reasonable return to Hong Kong Service requirements in order to continuously train local senior research talents.

The above was published in the 251st issue of "Hong Kong 01" Weekly (February 1, 2021) "Traditional Industries Suppress Emerging Talent Demand".

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Selected content of 251 issue of "Hong Kong 01" Weekly News:

[Cover story] Elite thinking dominates the traditional economy to clamp down on Hong Kong's talent strategy dilemma

Beijing's policy of governing Hong Kong is shifting from "struggle" to "reform"

Why is "consultation theory" included in the Basic Law?

"Election" may not be better than "negotiation"

After the reflection of the GME war, who will pay the bill after the bloodbath on Wall Street?

"Kaishou" listed on the new and old economy at HKU

Under the epidemic, the elderly have no way to "medicate"

[Technology.

In the future] new variants will become normal, new coronary pneumonia will eventually become endemic

Gospel of the infertile and "alternative golden egg"?

U.S. fertility industry has huge business opportunities

Buy back public transit agencies to reduce commuting costs

Greater Bay Area Youth Employment Youth Policy Innovation Technology Unemployment Rate University Student Salary and Benefit 01 Weekly Report In-depth report

Source: hk1

All news articles on 2021-02-02

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