The High Growth Of Chinese Economy To Coexist With High Unemployment

This paper is based on the following background in regard to China's economy: the unemployment rate remains high and even keeps rising while the economy grows fast. The causes of this phenomenon which is in conflict with the general economic theory and principles have been discussed in the academic field. The results are not profound and systematic although they are sound. This paper, on the basis of the current research, supplies a comprehensive explanation for the phenomenon, and logically proposes suggestions for promoting economic growth and reducing unemployment. Empirical method and prescriptive method are taken in this paper.This paper is composed of the following aspects: analysis on the relationship between China's economic growth and unemployment; the influence of China's economic growth pattern on economic growth and employment; the influence of economic transition on economic growth and unemployment; the influence of over-utilization of labor force on unemployment; suggestions for promoting economic growth and reducing unemployment.The conclusions are as follows including the author's creative and innovative opinions:1, Economic growth rate and unemployment rate of China don't move in an adverse direction, namely Okun's Law does not exist in China. Especially during these recent years, high economic growth is accompanied by high unemployment.2, Explanations for this phenomenon are not in any certain economic theory but should be sought from the special feature of the economic growth and the unemployment of China.3, Coexistence of high economic growth and high unemployment in China is related with several factors: ①Economic growth pattern. Different growth patterns differ in their employment-creation effects. China's economic growth is generally driven by capital. With capital being concentrated on capital-incentive industries, however, capital deepening occurs and hence the drop of Employment Elasticity of Capital, which means the decline of employment absorption ability of capital; Economic growth—employment chain breaks up, and the Employment Elasticity of Growth falls, which means the decline of employment absorption ability of economic growth. Therefore, high economic growth does not inevitably bring about low unemployment, or rise in economic growth rate does not inevitably lead to drop in...