The unemployment rate has dropped to a four-year low of 5.5 per cent as sustained economic growth continues to create jobs, but the problem of youth unemployment persists..

This was the subject of a luncheon jointly organized by China Daily Hong Kong Edition and Recruit Magazine last week. Government officials, business people and academics shared their views on the causes of the problem and offered suggestions to improve the situation.

Youth unemployment is a major issue for government policy makers. It is a social problem that can have a serious effect on an individual's future, said Permanent Secretary for Economic Development and Labour Matthew Cheung Kin-chung.

"Young people lacking job skills and experience are particularly hard-hit in periods of high unemployment. The jobless rate was highest for young people between the ages of 15 to 24, with 44,000 people unemployed."

Despite the healthy economy, 11.2 per cent of the city's 300,000 unemployed citizens are youth in precisely this age bracket. This is significantly higher than the overall jobless rate of 5.5 per cent.

"About 25 per cent of unemployed young people are aged 19, which is a critical time for a person to choose a career, acquire and develop skills, establish an identity and become independent," Cheung said.

In a city known for its hardworking residents, the sight of idle youth hanging out on street corners or in shopping centres is enough to make some wonder if today's adolescents even share the work ethic of their parents' generation at all.

"Kids in Hong Kong these days are quite spoiled," said Chiang Lai-wan, a committee member of the Chinese General Chamber of Commerce.

"They lack the motivation to do well both in school and at work. Take my 19-year-old chauffeur, for example. He asked me to pay him less so he could have shorter working hours. He said he already made enough money."

Prestigious local producer, writer and director Alfred Cheung, who is running a programme to train young artists, was similarly frustrated.

"Unlike my generation, youth these days are more irresponsible and unstable, and they are not serious about their jobs. One of the young guys working for me quit for no particular reason and left without a trace - until he showed up again three months later (as if nothing had happened)."

He says that young people today spend too much time watching TV and playing video games, which he said leads to poor interpersonal skills.

"The problem is aggravated by Hong Kong's education system and traditional teaching methods, which do a poor job of motivating and inspiring students," the producer said.

"Teachers too often tell students to be quiet, and don't encourage young people to be creative. Teenagers also rarely talk with their parents at home. They grow up isolated and even anti-social."

Stephen Cheung, an economics and finance professor at City University of Hong Kong, said that one-third of the local population only finish Form 3, when compulsory education ends.

He said he was particularly worried about youth from low-income households.

"Families that live on government assistance, in particular, face critical problems. Young people from welfare families are more likely to have difficulty finding a job than middle class youth. Families on welfare often have many grievances with the government, and these can undermine social stability if those problems aren't properly addressed."

All participants at the luncheon agreed that the government should realize that youth unemployment is more than a problem of joblessness. It's actually an issue of competitiveness and education, they said.

"Although it is not uncommon for the youth unemployment rate to be higher than the overall rate in other countries, we must not treat the problem lightly," said Matthew Cheung, adding that the issue was a top priority for the government.

The Special Administrative Region Government launched the Youth Pre-employment Training Programme (YPTP) in 1999 and the Youth Work Experience and Training Scheme (YWETS) in 2002 to target students without clearly defined career goals.

"The two programmes have been well-received and supported by the community, and have been publicly recognized for being so successful," Matthew Cheung added.

Eddie Ng, chairman of the Hong Kong Management Association, said that unemployed youth in Hong Kong often feel there's no hope for them because they are not well-educated enough.

"The government and all of society needs to promote the concept of continued education by providing training, as well as developing sound accreditation for these training programmes."

Matthew Cheung concluded that the causes of youth unemployment are complex, and involve a host of factors including the job market, personality, education, skills, experience, interests and family or social background. He pledged that the government would deal with the issue in an open, innovative and practical manner.

(HK Edition 12/16/2005 page4)