Research On Employment And Unemployment Status, Mechanism And Countermeasure During China's Economy Transition

Today's China is facing the challenge of serious unemployment. The structural unemployment, with the characters of increasing sharply and in a large scale, has impacted various areas including sustainable growth of economy, deepening of reform and stability of society. Under the three impacts, namely economic transition, social transformation and globalization, employment issue has becoming the most serious challenge in 21st century for China and one of the most difficult problems in the whole world. Therefore, if China's employment issue could be resolved, it would be in favor of not only China's development, but also the economic stability and prosperity in the whole world. As result, it becomes one of the most urgent works for China's academia that analyse the mechanism of interacting between different impacts and employment, seek the new way to create employment opportunities and reduce unemployment, and set the systematic framework to deal with various impacts. These are just about this paper's focus on.This thesis uses the theory framework and model of transition economics, at the first time in China, to analyse the basic mechanism of how the economy transition acts on the demand of employment in China. The basic mechanism can be concluded as three effects: reallocation, disorganization and restructure. The results show that: under influence of these effects, the employment demand in the traditional formal sectors and some industries whose production capability has been superfluous will inevitably decrease. However, many new employment opportunities in urban area and non-agriculture industries will be created by development of informal sector, new emerging formal sector and new industries. As result, the whole employment and unemployment pressure will be relieved. However, contrasting to other transition economy, the rise of China's unemployment rate is lagging at the aspect of the emerging time. Since the beginning of economic reform, China is experiencing a change from the status of employment increasing fast to another one of large-scale unemployment. This change can be attributed to two reasons: Firstly, China's economic transition began with improving plan-economy and after then building the market-economy, which is very different from shock-transition. Secondly, China's productive capability began with insufficiency and after then superfluous. These reasons make employment and unemployment status in China is obviously reverse to that of other transition economy.During analyzing the countermeasure to employment and unemployment problem in China, this thesis uses the theory framework of "external impacts andpolicy response" in international political economics, at the first time in China. Three principal objects during economy transition are emphasized: "employment first", "equity first" and "human right first". And the policy framework is set on two mutual complementary aspects: the first is active impacts management mechanism, namely creating new employment opportunities; the second is passive impacts management mechanism, namely improving social security system.At the aspect of active impacts management mechanism, this thesis points out initiatively that the mode of urban employment in China should transform from formal employment in dominance to informal employment in dominance. That means enlarge the urban employment demand by developing informal sector and encouraging flexible employment such as self-employed and part-time job.To develop informal employment, this thesis brings foreword new governance concept, namely building friendly cooperative relation among government, market and society. That means NGOs' role, especially including the role of providing various service and mobilizing social resource, should be improved.Yang, Yunxin (Management Science and Engineering)Directed by: Angang Hu (Professor)...