Study On Development And Employment Effect Of Modern Service Industry In The Central Region Of China

The level of development of modern service industry is an important indicator of modernization and how developed a regional economy is. Service industry is a combination of labor-intensive, capital-intensive and technology-intensive industries, which has great capacity to accommodate employment. So far, the Central region manufacturing is still the main industry absorbing labors. But the absorptive capacity of service industry is also growing with the development of central region service industry. Accelerating central region service industry is the urgent need to achieve the goal of Rise of central China, promote the transformation of economic growth mode, solve livelihood issues and promote employment. However, the development of modern service industry varies quite differently due to different historical backgrounds and economic conditions of the six provinces. Based on the above, I collected data of the six provinces, used panel data model and then estimated the employment elasticity of the three industries of the Central region, the employment elasticity of the three industries of every province in the Central region. The result indicates:a long equilibrium exists between level of modern service industry and level of employment, the employment elasticity of tertiary industry in the Central region has an ascending trend, the tertiary industry will become the main channel to absorb labors in the Central region.