The Perfection Of Labour Market And Anti-unemployment

Unemployment is a severe problem within several to twenty years in China. However, different people have different ideas about how to curb unemployment, combining the primary types of unemployment, namely, frictional unemployment, structural unemployment and institutional unemployment with the currently feasible anti-unemployment measure, I argue that the best way to cope with China抯 unemployment is to perfect labour market. Because there are usually three ways to diminish unemployment: the first is to boost economic growth speed; the second is to transform the mode of economic growth or to carry out structural adjustment in order to enlarge employment and the third is to perfect labour market. But whether or not the economy can boom rapidly is not dependent fully on man抯 subjective desire under so many objective constraints in China, for the accumulation of China抯 economic gross volume has turned our country抯 economy into the current moderate rise stage from the past fast rise stage, and now is the period of escalating development stage and structural adjustment. Moreover, there does not always exist inverse correlation between economic growth speed and employment rate through the observation of 揅hina抯 Phillips curve? Therefore, the effect will not be conspicuous if we count on the stimulation of gross domestic demands and economic growth; what抯 worse, this method may let the economy slump into 搒tagnation and inflation The change of mode of economic growth must accompany technological progress; in the short run, it will increase unemployment and in the long run, it can facilitate employment through the development of many industries. So according to the present unemployment situation, we should take measures to perfect labour market so as to eliminate frictional unemployment and structural unemployment and meanwhile to lower high natural unemployment rate when the equilibrium of the demand and supply of labour force forms. To consummate labour market must admit the commodity of labour force; hence, this paper抯 first part discusses the reason why labour force commodity is in existence in China and why it is necessary and claim that it is not in contradiction with worker抯 master status. In addition, I tentatively and integrally define labour market in this part. The second part reviews the principle of neoclassic economics and trace the modem labour economics on how labour market allocates labour force and on the basis of these theories, I analyze the reason why the way of allocated labour force under traditional institution is not efficient and draw a conclusion that the nonelasticity of wage to the supply of labour force is the cause of low efficiency and labour redundancy at SOES. Furthermore, I analyze the characteristics of dual system and dual allocation of labour force in present labour market of China. At the same time, after current and future labour market is analyzed and predicted; in the fourth part I put forward the measure of perfecting labour market to handle unemployment. Besides, to some extent I probe the outlet of redundant agricultural labour force.