Free of charge: Future prospects and current situation in HK self-employment
Unformated preview of the document: 'Future prospects and current situation in HK self-employment' (Part 1):
2015 Economic Background and 2016 Prospects
1
Box 6.2
An update on the self-employment situation(1)
The prevalence of the internet has provided a platform for peer-to-peer exchange and
facilitated on-demand service provision. Recently there has been growing attention in some
advanced economies including the US and the UK about the phenomenon of a sharing (or
“gig”) economy and what it entails for employment. One aspect of a gig economy is the
potential rise in self-employment, as workers are more mobile and contract flexibly as
freelancers on short-term work engagements. This article looks at the trends in
self-employment to see if there is any evidence of an emerging gig economy.
Recent trends in self-employment
During the period 2004-2014, the number of self-employed persons hovered between
209 900 and 243 500. Its share in total employment likewise moved up and down, reaching
a low of 6.2% in 2014 (Chart 1a). Around 80% of self-employed worked on a full-time
basis, though both the number and share of self-employed full-timers have declined
somewhat over the past ten years (Chart 1b). This conceivably suggests that some
previously self-employed persons might have been re-absorbed into conventional
employment as the economy recovered. Meanwhile, the number of self-employed persons
working voluntarily on a part-time basis went up from 28 400 in 2004 to 40 600 in 2014,
while also taking up a visibly higher share among all the self-employed, hinting that more
individuals might have opted for self-employment as a voluntary choice between flexibility
and job security.
Chart 1a: Trend in self-employment Chart 1b: Self-employment by employment status
Note: The percentages may not add up to 100 due to rounding.
81.3 82.2 78.1
12.4 13.2 18.7
6.2 4.5 3.2
0
10
20
30
40
50
60
70
80
90
100
2004 2009 2014
Underemployed Voluntary part-time
2015 Economic Background and 2016 Prospects
2
Box 6.2 (Cont’d)
Self-employment by sector
In 2014, self-employment was more prevalent in such sectors as transportation, storage,
postal and courier services, retail, financing and insurance, and public administration, social
and personal services (Chart 2). Many of the self-employed persons worked as drivers and
mobile machine operators for road transport, personal service workers in domestic household
activities and beauty and body prettifying treatment, salespersons and models, insurance and
pension funding agents, as well as teaching associate professionals. The self-employed
ratios in the transportation and retail sectors went down somewhat over the years, while those
in financing and insurance, public administration, social and personal services held up or
increased. In so far as the low paying sectors (LPS)(2) as identified by the Minimum Wage
Commission (MWC) are concerned, the self-employed ratios of most individual LPS
(excluding government employees and live-in domestic workers) remained broadly
unchanged at their respective pre-SMW levels during 2011-2013. Yet a marked increase
was seen in hairdressing and other personal services (up from 26.2% in 2010 to 32.5% in
2013), before falling back somewhat together with many other sectors in 2014.
Meanwhile, the self-employed ratio in information and communications held stable at a
relatively low level in recent years, but this figure conceivably had not fully reflected the
scope of self-employment among IT professionals, who might also be engaged by enterprises
in other sectors on a freelance basis to design and build up sophisticated and innovative IT
applications for the sake of productivity enhancement.
Chart 2: Self-employed ratio by sector
(#)
Notes: (#) Due to the adoption of Hong Kong Standard Industrial Classification (HSIC) Version 2.0 in 2009, data before 2008 are not
strictly comparable with those in later years, more so for the Information and Communications sector and hence not shown here.
(^) Manufacturing, accommodation, food and beverage activities, real estate and other sectors have only a low incidence of
self-employment and are grouped in “Others”.
8.4
5.8
11.4
20.3
7.7
6.7
6.3
2.1
7.4
8.9
5.6
9.2
20.1
3.6
7.4
5.6
7.5
2.0
7.4
5.6
4.2
7.3
16.2
3.6
7.7
5.4
7.3
1.5
6.2
0
5
10
15
20
25
Construction Import/export
trade and
wholesale
Retail Transportation,
storage, postal
and courier
services
Information and
communications
Financing and
insurance
Professional and
business
services
Public
administration,
social and
personal
services
Others^ Total
2004 2009
2015 Economic Background and 2016 Prospects
3
Box 6.2 (Cont’d)
Self-employment by gender and age
In terms of gender, self-employment was more prevalent among males over the past ten years,
especially those aged 40 or above, though the respective incidence rate has fallen somewhat
in recent years. Meanwhile, the self-employed ratio of females, who were conceivably
those
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