A Study On The Mechanism Of Sluggish Employment Growth Falling Behind Economic Growth Since 1990S In China

Employment has long been a focus of research in economics, especially nowadays when unemployment turns into a graver situation in China. Employment growth falls behind of economic growth in China. This problem has been serious since 1990s.When analyzing the unemployment situation in China, the thesis employs a combination method of standard analysis and evidence analysis. The paper starts with defining the concepts of unemployment and its related theories, analyzes the current situation of the unemployment and the economic growth in China, mainly focus on the technological progress and the adjustment in structure of production's impacts on the employment and economic growth. The direct effect of technological progress is bigger than its indirect effect. The impact of technological advances furthers unemployment. The adjustment in structure of production embodies that the employment elasticity of agriculture and industry is very small so that they can't take in employers any more, and the employment elasticity of the service industry is bigger so that it can take in more employers.Meanwhile, by examining the phenomenon of employment growth lagging behind economic growth, this thesis reveals the impact of technological advances and the adjustments in the structure of production are the main reasons to this phenomenon.Then, the thesis produces a countermeasure for solving the problem of sluggish employment growth of China. Firstly, the technological progress should aims both on the employment increase and on the economical growth. Secondly, rationalize the structure of production in order to make the employment transfer to service industry.