The Employment Elasticity Of Economic Growth Of Hunan Province

The relationship between economic growth and employment growth is always a topic that economists concern. Whether developed regions or developing regions, the actual situation of their economic development basically supports the negative correlation between economic growth and employment growth. However, because of economic structure, economic growth mode and so on, the strength and direction of interaction between economic growth and employment growth will be different in the real economy.Since reform and opening to the outside, although Hunan province's economy has maintained rapid growth speed, but the employment problems are more and more prominent, and the problem of high economic growth rate and low employment growth rate coexistence turns up. This paper attempts to study the phenomena that Hunan Province's employment elasticity was low (the traction power that economic growth to employment was low) and declined constantly during 1991-2007. Firstly, this paper summed up the domestic and foreign theory and research on the relationship between economic growth and employment growth, and found that in the previous study economists concerned about how to use the labor force to achieve the desired economic growth rate more often, that is to say it's the economic growth purpose study, so the importance of the employment is ignored. According to the plight of Hunan Province - economic grew fast but employment grew slowly, this paper studied economic growth's impact on employment growth specially, hoping to find an economic growth way that is propitious to employment. The annual employment elasticity during 19911- 2007 was calculated though define. Then this paper did ADF Test, Co-integration test and Granger Test to the two important sides of employment elasticity, GDP and employment number. Then did regression analysis of this the both to calculate general employment elasticity of Hunan. This paper analyzed the factors'impact on employment– technology progress, industrial structure evolution, non-formal employment and labor market segmentation. Then according to the foregoing analysis, some policy recommendations were put forward.