The Relationship Between Service And Increased Employment

Employment has become the primary issue in the course of economicdevelopment. Due to the special situation in our country, the economic growth onlybrought by the domestic consumption and investment can't meet the requirementsof increase in employment. Hence the solution to the problem must be various.According to the Foreign Trade Multiplier theory, the trade growth can add theemployment volume.In the course of economic globalization, international service trade keepsgrowing rapidly. Service trade becomes more and more important in the Internationaltrade markets, and the service has been the significant form of production in thedeveloped country. However, the development of service trade varies in differentcountries. First, this paper analyzes the service trade and employment situations ofour country. In contrast with the situation of the developed countries, the servicetrade of our country hasn't made enough contribution to the employment, and stillhas room for development. Through the regression analysis between the number ofpeople in service trade and the export amount of service trade, we can draw theconclusion that these two variables are linearly correlated. Meanwhile, throughanalyzing the effect of service trade on employment, we can get to the conclusionthat the development of service trade will give an impulse to the increase of thenumber of people employed.In the end, the essay indicates the problems in service trade development. Itconcludes the improper structure of service trade, low labor quality, amplified lawmechanism and so on. To solve these problems in service trade, the concretemeasures are presented in this paper.