De-industrialization and the ‘disappeared workers’

Abstract

Hong Kong has undergone a remarkable process of a complete cycle of industrialization and de-industrialization within the lifetime of one generation of workers. This paper explores the impact of this swift economic progress and examines the adjustment problems and difficulties experienced by workers displaced from their jobs in a rapidly de-industrializing society. It addresses the issue of what has become of these displaced workers. It was found that, while a proportion of the displaced workers were able to find alternative employment in the expanding services industries, many became discouraged workers who joined the ranks of the hidden unemployed, partly as a result of discrimination which compounded their problem and further hindered their search for work and employment. The data show that many of these people eventually (in)voluntarily withdrew completely from the labour market. Suggestions have been made regarding the role which can be played by the government in particular to ease the transition of displaced workers into other employment positions.

Keywords:

• De-industrialization
• hidden unemployed
• Hong Kong

Notes

1 According to the definition as per the General Household Survey, ‘displaced workers’ refers to persons aged 20 or over who during the twelve months before enumeration, had left a job which they had been engaged for two years or more due to:

1.	employer closing down business; or
2.	employer moving operations to China or other countries; or
3.	post being abolished or
4.	slack work.