Fixing social ladder for Hong Kong youth

An oversupply of degree holders in a growing ‘flexi-employment’ labor market with low pay and slim career prospects frustrates youth, while the added burden of student loan debt makes it even harder to save for a down payment on a home. Oswald Chan finds that while youth social mobility may seem impossible, experts are working to find solutions.

Youth social mobility refers to the transition within a social class (horizontal mobility) or between social classes (vertical mobility). It is a multi-dimensional concept beyond the quantitative measurement of changes to earnings, education, and job status. It indicates whether young adults can access meaningful careers, affordable housing, a better quality of life, and discretionary spending capacity.

Multiple constraints

A confluence of economic, social, educational, and labor-market factors diminishes the social mobility of Hong Kong youth. The traditional tertiary education structure, lack of a diversified job market, dearth of new-economy digital skills, plus the lack of a broad startup culture for innovation and entrepreneurship, are leaving Hong Kong youth trapped with limited options. That makes for an educated young adult population, growing increasingly resentful as hope fades.

The city has broadened access to tertiary education over the last 30 years, with increases in publicly-funded undergraduate programs and self-financed sub-degree programs. That is producing a surplus of academic graduates with little immediate employer value.

Two consequences of this are: Firstly, the degree expansion raises expectations which incomes and career prospects fail to satisfy; secondly, the under-development of vocational training limits job options, as university degree holders lack the skills to add value at entry level. Neither are they considered for executive positions, which their education warrants. Employers prefer workers who can be productive immediately.

The lack of economic diversification in Hong Kong also restricts youth career options. The economy is dominated by four major pillars — financial services, trade and logistics, tourism, and professional services. All of these domains require specific knowledge and expertise. The job market is not flexible enough to absorb the excess of fresh graduates. Employers are disinclined to invest in training schemes.

‘Flexi-employment’ bane

Beyond the factors of educational structure and economic diversification, the increasing practice of short-term employment is a major impedment to youth social mobility. “Flexiemployment” is a fancy term for temporary jobs without security of tenure, or career prospects. These are available at peak retail and tourism seasons, or for specific projects, where extra hands may be required to cope.

Flexi-employment requires youth readiness for, and adaptability to, the volatility and shifting demands of the labor market. More Hong Kong youth are engaged in the service and sales sectors over the last two decades, reflecting the growth of flexi-employment.

The Hong Kong government promotes “work-first” and “on-the-job training” to boost youth employment as quick fixes — overlooking low pay, lack of job security, limited work benefits, and almost no career advancement. Degree and associate degree holders compete with 6-form leavers for entry-level jobs. It makes for a classic supply-demand tilt in favor of employers, who then offer low pay and benefits. The upward social mobility opportunities for youth remain bleak.

Youth Commission

Lau Ming-wai was chairman of the Commission on Youth (CoY), under the Home Affairs Bureau from May 2015. He was then appointed vice-chairman of the Youth Development Commission (YDC) for a two-year term, from March this year. The CoY is now incorporated into the YDC, a high-level, cross-department platform under the chairmanship of Chief Secretary for Administration Matthew Cheung Kin-chung.

Housing and financial independence were priorities in the CoY recommendations — strengthening the homeownership ladder with a wider range of accommodation options, plus identifying the factors affecting youth financial independence.

“The government has crafted a youth development strategy. By establishing the YDC, it demonstrates determination to implement the recommendations,” Lau told China Daily. “Inter-governmental departments should coordinate to implement these suggested measures to tackle the declining social mobility issue. If the administration has the will, this can be tackled within the next 10 years,” said Lau. The YDC continues to explore ways to enhance youth social mobility.

Cindy Lau Si-wing was research and program director at Lau Ming-wai’s youth-oriented think tank — MWYO. She believes the government should diversify the economy and promote a favorable environment for entrepreneurship, so that high-paying careers can be provided to the youth. “The city’s education system should focus more on experiential learning so that students can gain businessrelated soft skills such as creativity, critical thinking, problem-solving, and effective communication,” noted Lau.