Hong Kong's adaptable workforce is its most treasured asset and the Government aims to ensure that it is sufficiently dynamic, well-motivated and skilful to contribute to Hong Kong's economic competitiveness. There are, however, challenges which have to be addressed apart from job creation, including unemployment caused by economic restructuring, globalisation, the wider application of information technology and corporate downsizing. The Government is adopting a multi-pronged strategy in response to these challenges involving upgrading the workforce and improving the business environment as well as enhancing employment opportunities to meet the demands generated by a knowledge-based economy.

To this end, the Employees Retraining Board offered over 118 000 training places in 2005 to assist eligible workers, especially those who were displaced or unemployed, to re-enter the labour market. Meanwhile, the Government continued to offer extra help to enhance the employability of the more vulnerable groups in the community. The Labour Department has introduced a package of market-oriented employment initiatives such as the Employment Programme for the Middle-Aged, the Work Trial Scheme, the Special Incentive Allowance Scheme for Local Domestic Helpers, the Youth Pre-employment Training Programme, the Youth Work Experience and Training Scheme, the Youth Self-employment Support Scheme and the Work Orientation and Placement Scheme for disabled job-seekers. To provide 'through-train' service and to maximise the benefits for trainees in the youth pre-employment and work experience schemes, a revolving-door mechanism has been introduced to allow the trainees to move between the two programmes at different stages during the programme year. In addition, job fairs are staged and enhanced job-matching services are provided to assist those in need to enter/re-enter the labour market.

As a short-term measure, the Government has created a number of temporary jobs in the public sector from 2000 to help the unemployed enter/re-enter the labour market and meet operational needs. In 2005, some 11 600 temporary jobs were extended. Many of these jobs were suitable for workers with a lower education and skills level or those with limited work experience. In the longer term, the Government will continue to foster economic development so that more jobs can be created by the market, and will invest heavily in Hong Kong's human capital to minimise the skills mismatch.

The Government also recognises the need to promote good employer-employee relations, enhance the rights and benefits of employees in a way commensurate with Hong Kong's socio-economic development, and protect the safety and health of employees at work.