Study On The Labor And Economical Growth In Mongolia

During the 20 years when the economic system in Mongolia transformed from planned economic system into market economy system, the level of economic development in Mongolia has improved significantly. In recent years, the economic growth has obviously sped up. Especially when they were affected by the factors, like exploiting and utilizing mineral resources in large scale, implementing economic development and so on, the scale and GDP of Mongolian economy had been growing strongly. According to the theory of economic growth, economic development and growth in any country are related to labor, capital and the level of production technology. In terms of the actual situation of Mongolia, though abundant natural resources, developed animal husbandry, vast territory and geographical location were the advantages in development, the population in Mongolia are relatively rare and the labor resources are comparatively in shortage, thus in the process of promoting national economy stepping into a high-speed development path from rapid development path, the vital question was to promote economic growth by rational using human resources.Based on the combing of the employment theory in economics and selection of relative statistical approach to analyze the Mongolian labor resources, with the help of Solow economic growth model, the author defined the relevant concepts of market economic activities in job market, economically active people, active labor force, contracted employee and part-time employment, and made clear the calculation approaches of employment rates in all fields and the index of labor force statistics. Then the author, through the comparatively targeted utilization of the above model and tools, analyzed the overall condition of social and economic development in Mongolia, the employment situation, the situation of unemployed person and the present situation of labor force transfer, hence hold the basic situation in every aspect having relevance to the labor force in Mongolia.Based on the large amount of the data and the detailed charts, the author deeply analyzed the factors that affect the employment rate in Mongolia. The author mainly focus on three aspects: the influence to labor and capital made by employees’ wages, labor productivity and the change of national GDP. First of all, in the economic industries, not only the amount of the salary of employees existed differences, but the growth rate and the growth speed had significant differences.Although the nominal wages in industries presented a rising tendency in recent years, influenced by the price, the real wages had a fluctuated changes. The relationship and trend between the average wages in different industries and the amount of the employees also showed differences. Secondly, the indexes in economy over the years showed that the labor productivity was different in different industries, but it had close relationship with the wages and the amount of the employees. Finally, the author quoted Cobb-Douglas production function to make comprehensive analysis of the influencing factors of national GDP. After the layers of in-depth analysis, the influence to economic growth made by the labor force in Mongolia become clear gradually. With the help of Cobb-Douglas production function, the concrete values of output of per capita, total factor productivity, saving rate, growth rate of population, capital depreciation rate and output elasticity had been certained. According to the accounting of the aspect of average national GDP growth, the labor force elasticity is 25.44%, capital elasticity is 53.88%, influence rate of productivity rate is 20.67%,. Therefore, the proportion of all the factors that affected the economic growth had been clear ultimately.The indexes in the above model results from the calculation of the statistics. Due to the reason that the indexes are not invariable, so it is necessary to further predict the developing trend of labor force in the future and the influence it has to the economic growth. The population in Mongolia is rare and the population grow rate would limit the reservation of labor force resources. Therefore, the question of labor force reservation should be the first priority. The innovating accounting report to population future issued by Mongolian National Statistics Association released the Mongolian population growth trend until 2040, making clear that until 2021 the population growth rate in Mongolia would reach to 1.52% and also made limited function to the reservation of labor force resources. Scientific prediction should be made by combining the current situation of labor force resources in Mongolia and the developing trend in the future. If the labor force resources in Mongolia want to promote economic growth in a better way, it is necessary to positively push the increase of employment rate of active labor force; narrow the gap between wages and labor productivity in industries; effectively improve the level of labor productivity and capital productivity. All parties should work together to fulfill the general objective for economic development in Mongolia in 2021.