Employment Effects Research Of Residents’ Consumption In China

Employment has a vital bearing on people’s livelihood, which serves as the basis for the improvement of people’s living standard and realization of common prosperity. In this sense, employment remains the focus of government’s work. Against the backdrop of the salient supply and demand contradiction between labor force, the slowdown of domestic economic growth and shrinking overseas market demand, it is of practical significance to explore approaches to create more job opportunities. At the key period of transformation of economic development pattern, expanding domestic demand, especially the consumers’demands, promoting the coordinated development of consumption, investment and export are made the priority for China in this regard. Under such circumstances, it bears great practical and theoretical significance to analyze the interactive relationship between Residents’ Consumption and employment as well as pulling-effect of Residents’Consumption on job creations.On the basis of rationalizing both domestic and foreign literatures pertaining to consumption and employment, this paper analyzes the interactive relations between China’s Residents’Consumption and employment since reform and opening up, investigates the transmission mechanism between Residents’ Consumption and employment as well as its influential factors and conducts empirical analysis on the employment effect brought about by Residents’ Consumption through panel data model and input-output method. By means of the results of the analysis, it proposes the policy suggestions on promoting employment through Residents’Consumption.The domestic and foreign researches on the relevant literatures investigate the correlations between consumption and employment mainly through analysis of the demand and supply, the impact of consumption on the demands and the influence of demands on employment as well as the effect of employment on consumption. Also by following this approach, this paper analyzes the influence of consumption and investment on the supply and demand of labor forces and the role of Residents’ Consumption in eradicating cyclical unemployment, ensuring full employment and alleviating the structural unemployment. On the basis of which, it further analyzes the transmission mechanism between Residents’Consumption and employment, sensitivity index, restraint conditions and influential factors and explores the reactions of employment to Residents’Consumption. To discuss the correlation between Residents’Consumption and employment, this paper also analyzes the evolution of Residents’Consumption and employment since reform and opening up and points out that the Residents’ Consumption movement is the main reason for employment alternation.To further investigate the pulling-effect of Residents’ Consumption on employment, this paper conducts quantitative analysis of the pulling-effect of the total Residents’Consumption on non-agricultural employment, or the elasticity of non-agricultural employment of Residents’Consumption by means of panel data model. Due to the adjustment in employment statistics method since reform and the fluctuation in employment data as the result of the state-owned enterprise laid-off workers, this paper only refers to the data collected from2003to2010in the process of quantitative analysis. With great advantage in data analysis of short-time series, panel data model provides substantial sample points for analyzers, enhances the degree of freedom and weaken the collinearity between explanatory variables. Meanwhile, it could not only analyze the metering relationship between Residents’Consumption and aggregate employment, but also investigate the correlation between Residents’Consumption of different provinces and employment. Through analysis, it finds out that Residents’Consumption on non-agricultural employment growth has stimulative effect. Different factors, including the degree of market and labour productivit, may give rise to the difference of non-agricultura employment elasticity of Residents’Consumption in different regions.To further examine the employment effect brought about by the changes in Residents’Consumption structure, this paper adopts the input-output model to analyze the impact of Residents’ Consumption structure on employment. Input-output model could simplify the method of economic analysis, thus being heralded as an idea tool to analyze the employment effect of Residents’ Consumption due to its influence on Residents’Consumption structure, industrial relevancy structure and labor input structure. The analysis results show that, on the basis of the current Residents’Consumption structure and the formation structure as well as the export structure of fixed capital, the household unit consumption plays a bigger role in creating job opportunities than unit fixed capital and unit export do. The analysis of the impact of Residents’Consumption structure, industrial correlation and labor input coefficients on employment effect indicates that, the employment effect of China’s Residents’Consumption structure falls on a year-on-year basis, which is attributable to the decrease in labor input coefficients and changes in Residents’Consumption structure. In addition, as the result of the consumption structure, the employment effect of unit consumption of urban residents is lower than that of rural residents and the employment effect of unit Residents’Consumption in eastern provinces is lower than that of western provinces. For this reason, compared with the consumption structure of rural residents, the optimization in consumption structure of urban residents is useless in creating job opportunities; only by expanding the proportion of service-oriented consumption in Residents’Consumption, could the employment effect of Residents’Consumption structure be enhanced.The contribution of this paper lies in its further discussion of the relevant sensitivity index and influential factors in the process of driving job creation by Residents’Consumption on the basis of the existing researches pertaining to consumption and employment. By adopting the input-output model, it also analyzes the impact of Residents’Consumption structure, industrial correlation and labor input coefficient on the employment effect of Residents’Consumption structure.