Research On The Employment Problem Of China's Economy

Economic growth is the basic premise for achieving employment, in the face of China's huge unemployment, still need to rely on the rapid economic development. But whether economic growth can be achieved with the coordinated development of expanding employment is depend on the content of economic growth. Industrial development is the essence of economic growth, and also decided the labor and employment development. Therefore, solving the employment problem lies in the industrial development.This paper that is guided by Marxism economy theory, and as a background of the economic globalization and building the harmonious society, and the main line of industrial development , thoght of the employment effect of China's economic growth, and researched the Relations between industrial development and economic growth and employment development.On this basis, this paper explore the path which as the support of industry Chinese minght achieve faster economic growth and create employment opportunities as many as possible. Section one is literature summary. Including summary of study on western employment theories and the relation between employment and economic growth, and summary of study on employment insufficiency problem by domestic academic circles.Section two is about reaserching the economic reasons of the problem of employment, and the the effection of the world economic development on the trend of labor and employment.From the perspective of world history, it thought employment like the allocation of resources, was dominated by the laws of the market economy, and is the inevitable phenomenon in market economy conditions. Since the 1990s, this paper founded the relation between the employment and the economy become diverse and complex, that is , economic growth not only have the mechanism of promoting employment growth, but also have the mechanism of exclusion employment growth. The rapid development of service industry has brought new opportunities to employment growth.The development of high-tech has brought uncertainty on employment growth. The economic globalization made the unemployment problem becoming more complex. This was provided the ideas and directions of how to expand employment effect of China economy.Section three proved the rationality and necessity of studying the employment problem of China's economy as the perspective of industry development. Since the 1990s, China's economic growth to promote employment increacing gradually weakened. Rapid economic growth is actually accompanying with lower employment growth. While the failure of Okun's Law show that the obvious negative correlation between China's economic growth and Unemployment does not exist. To a large extent, China's unemployment is not cyclical unemployment and is mainly for the frictional unemployment and structural unemployment.Further analysis of the various factors which impact on employment effect of China economy, this paper thought that industrial development cause the fluctuations of the total output and structure of economic, and thus affecting the development of labor and employment. It demonstrated this paper be more convincing to analysis employment effect of China economy by the main line of industrial development.Section four study the relationship between the industry development and economic growth and employment development. First, from view of the theoretical, this paper thought the essence of modern economic growth is the industrial development, and the industrial development determine the labor and employment development. So the essence of the issue of employment effect of China economyt is industrial development which impact on the labor and employment. From the point of empirical view, useing the Granger causality test to study the realations between China's economic growth and industrial development and employment, the results show that China's industrial structure optimization has no apparent effection on employment increasing, which restricted the employment effect of China economy. It further proved the Conclusion of the third part, which is the non-balanced development of the industry is not only restricted the expansion of employment, but also limited the economic growth faster. Therefore it is necessary from the perspective of industrial development to study employment effect of China economy. So this paper smoothly transformate the macroeconomic issure of the employmen increacing in the economic growth to the issues of the concept of industrial development and the promotion of employment, that pave the way from the view of the industrial development to analysis of employment effect of China economy.Section five is around the content of the industry development, and analysis the series of contradictions between employment and economic growth. These contradictions can be divided into three areas:Firstly, It discuced the problems about the rationalize of the industrial structure, mainly from the empirical analysis of the development of China's three industries and their employment effects. Through analyzing the changes of the output of the three industries and the situation of absorbing employment, comparativing China's instructure to the standard industrial structure and the other countries'structure, estimating the deviation of output structure and employment structure, which all clearly show that the relationship between the output of China's three industries Structure and employment structure were fragmented, and the changes of the structure of employment seriously lagged behind the output structure.That is the reason which restricted the economic growth to faster the employment increacing. The artical Further analysis showed that the extensive capital deepening mode of the secondary industry development reduce the accumulation of capital to absorb labor,which forced the labor of the first industry most transfering directly to the lower technology industries of the traditional services;and showed that services industry developt slowly and which have the unreasonable internal structure, and also showed that the week relation between the secondary industry and the services industry, which leading to the industrial system of self-organizing capacity is weak.These irrational industrial structure hamper employment effect of China economy. So it is need to implement the strategy about rationalizing the industrial structure to expand employment. First ,as the basis of the development of agriculture, the govement should optimize the rural economic structure and extend the agricultural industrial chain and prevent the"empty" of the agricultural labor force; Second,as the Second-led industrial development, the govement should promote industrial restructuring to expand employment channels; Third,the govement should accelerate the development of the service sector.Secondly, it discuced the problems about the higher trend of the industries. First, from the view of theoretical ,the paper analysis the mechanism of the technological progress how to influnce on the evolution of the industrial structure and on the labor and employment. It thought that the essence of the industrial structure Gao Jihua is promoted by the technological progress, and therefore have "exclusion" and "compensation" effect on the employment. Second, it discussed the Gao Jihua way of China's industrial.That is, using the high and new technology transform traditional industries and making high-tech industries,and in accordance with their different effects on the employment, we should build an effective mechanism to play its positive role in expanding employment.Thirdly, it discuced the problems about at the background of economic globalization, how to play the comparative advantages of China's industry, in order to ease domestic pressure on employment issues. First, it studied economic globalization have the impact on a State industrial development through the international trade and international capital flows and the transfer of industry in different countries, which ultimately affect the changes in the international division of labour, employment opportunities and so on. Second, it analysize the China's industrial competitiveness in the economic globalization, it thought that the comparative advantage of China's industries translate from resource-intensive to labor-intensive industries, and the comparative disadvantage of capital-and technology-intensive industries is weakening. That shows during integrate into economic globalization, we would continue to use China's low labor costs to develop the labor-intensive industries, at the same time, to develope the capital and Technology-intensive industries, in order to promote the optimization of the industrial structure. We can use the value of Marx's theory to re-position the labor-intensive industries, and build the system favourable for their development.Section Six discuced the problems about the path of the Government how to promote employment opportunities.the Government should establish a "full employment" as the start point,and increasing public supply to directly or indirectly create employment opportunities, and Construction to increase employment at the core of the system of public policy, in economic development to create as many jobs, and provide the public system to increace employment rate. This part is the conclusions on the paper.Main contribution and innovation of this thesis:first, this paper thought the main reasons of the low employment effect of China economy is the imbalance development of industry; Second, this paper attempts to use the theory of international value of Marx's labor theory to make recommendations on how to develop the labor-intensive industries, and suggested how to build the institutional environment to develop labor-intensive industries.