TNAG-1064-FCO40-1314-Labour-relations-in-Hong-Kong-Professor-H-A-F-Turner-s-stud-1981 — Page 19

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than it would otherwise have been.

Unemployment in 1974/75 may have been high mass unemployment is a groso exaggeration) but the important point is that it did not last long.

Views on the comments by the

Economists Department

t: +

24.

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le have only minor observations on the comments of the

Economic Advisors."

Labour mobility

25..

Please see my previous comments in paragraph 20(f). 人

There are undeniably forces which limit labour mobility.

The important point is that, notwithstanding these forces, labour mobility remains high. One should also distinguish between actual mobility and potential mobility. The relative overall stability of employment in Hong Kong (that is, actual labour mobility being low) was precisely attributable to high (potential) labour mobility. Experience shows that when there is a need to move, workers do move across industries quickly.

Social Services provided by the Government

26.

The relative size of the public sector in other developed industrialised countries is much higher than that in Hong Kong and naturally the social security content of public expenditure is higher. But in Hong Kong, in view of the openness of the economy, it is essential for the private sector to be permitted to retain the resources and flexibility necessary to absorb externally generated disequilibrating

shocks.

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