The Analysis Of The Fast Growth But Low Employment In China

The classical economic believes in "the Say's law": the capitalism tends to the full employment inevitably under the condition that the price and the wage adjust with the demand freely. The 1930's unprecedented economy crisis has subverted the people's tradition view. The sum of the unemployment in 1933 reached 30 million. In 1936, Keynes published its work "The General Theory of Employment, Interest and Money" and said that unemployment was inevitable. The capitalism economic system could not realize full employment equilibrium automatically, and full employment equilibrium was only one kind of exceptional case. Therefore the government had to take measures to adjust the economy. After that, there came out many economic theories to increase employment. These employment theories or the economic theory have one common feature, that is, they all based on this kind of faith: The economy growth can bring the employment growth.China has taken a progress in economy at the appalling speed since reform and opening. China GDP ranked 11 in the world in 1990, ranked 6 in 2002, and ranked 7 in 2003 just because of rising in euro. According to the first economy survey, China GDP ranked 6 again in 2004. Over 26 years (from 1980 to 2005), the average GDP growth rate in China is 10.3%. According to the west economics theory, unemployment rate is low when economy grows fast. While, with the Chinese reform went further and economy system and structure adjusted from the late 1990's, millions of people lost their jobs. Besides this, so many recent graduates find jobs so difficultly that it draws the public attention. The reality in China conflicts with the west economics theory. I think that both economy system and the jobless make the question happen. So, the measures taken not only accelerate the economy into positive cycle, foster new point of growth, and so on, but also pay more attention to the jobless themselves.