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Following is a question by Hon Wong Ting-kwong and a written reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, in the Legislative Council today (May 20):
Question:
Quite a number of employers have relayed to me that since the implementation of the Statutory Minimum Wage (SMW) regime in 2011, some vacancies have remained unfilled despite their wages having been raised to a level above the minimum wage. In addition, starting from the first day of this month, the SMW rate has been raised from $30 per hour to $32.5 per hour. It has been reported that some academics anticipate that if the SMW rate is raised further, some jobs with less favourable working environment will face greater difficulty in recruiting staff, causing the aggravation of the manpower shortage situation. In this connection, will the Government inform this Council:
(1) whether it has compiled statistics on the growth rate of the annual total payroll expenses of various industries since the implementation of the SMW regime; if it has, of a breakdown by industry;
(2) of the respective increases in the numbers of part-time and full-time employees of the security, catering and retail industries since the implementation of the SMW regime; and
(3) whether it has studied the impacts of the implementation of the SMW regime on enterprises, particularly small and medium enterprises, in respect of business operation and recruitment of staff; if it has, of the details; if not, the reasons for that?
Reply:
President,
Since the implementation of Statutory Minimum Wage (SMW) in May 2011, the overall labour market has remained largely stable. Total employment increased to 3 792 300 (provisional figure) in February to April 2015, up by 250 000 over the pre-SMW (i.e. February to April 2011) level. The labour force likewise grew to 3 919 800 (provisional figure), up by 245 400 over the pre-SMW level.
My reply to the question raised by Hon Wong Ting-kwong is as follows:
(1) The Census and Statistics Department (C&SD) conducts the Annual Earnings and Hours Survey (AEHS) every year since 2009. Based on the results of this survey, the rates of increase in the annual total wage bill analysed by sector between 2010 (i.e. prior to the implementation of SMW) and 2014 are provided at Table 1. The changes in sectoral annual total wage bill could be affected by a host of factors (e.g. enhanced productivity of employees in the sector, the need for enterprises to hire more workers for business expansion, and/or the different extent of the impact of SMW on the trade concerned, etc.). Amidst the largely tight labour market in recent years, wages sustained steady growth which also pushed up the total wage bill.
(2) Based on the results of AEHS, the increase in the numbers of part-time and full-time employees in the security services, restaurants, retail and all sectors from 2010 to 2014 is provided at Table 2. The changes in the numbers of part-time and full-time employees could be affected by various factors such as the business environment and mode of operation of the sector concerned, and the demand and supply of manpower in the labour market, etc.
(3) By analysing and studying the data collected by C&SD and records of relevant government departments, the Government has all along been closely monitoring the socio-economic and employment conditions after the implementation of SMW including, among others, changes in the operation and staff recruitment of enterprises in general as well as small and medium enterprises (SMEs). The Annual Survey of Economic Activities conducted by C&SD provides important references for assessing changes in the business operating environment after the implementation of SMW. In addition, the results of other surveys conducted by C&SD like the General Household Survey and Quarterly Survey of Employment and Vacancies, and the figures of establishments, business registrations, bankruptcy and winding-up petitions provided by relevant government departments may also reflect the labour demand and operating conditions of enterprises.
In reviewing the SMW rate, the Minimum Wage Commission has examined in detail all the aforesaid data and information as well as the impact of the implementation of SMW on the operation and staff recruitment of enterprises of various sizes. The impact of the implementation of SMW on enterprises (including SMEs) has also been set out in the 2014 Report of the Minimum Wage Commission.
Ends/Wednesday, May 20, 2015
Issued at HKT 14:19
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