| Along with the wide influence of the science and technology revolution, the overseas advanced technology is used extensively and the contribution rate of it is growing gradually. But this embarrasses the using on the labor force. Many problems should be given the theoretical and empirical explanations. According to the cointegration analysis of Shandong province, technological progress has the negative influence on the whole industry in the short-term, but in the long-term it has the positive influence on employment with error-correction; the evolution of the technological progress presents from the capital-intensive path, the neutral path to the knowledge-intensive path. So the industrial development of Shandong province should bring in the overseas advanced technology continually, and increase the financial input into scientific and technological activities of the second industry. Meanwhile the independent innovation must be paid attention to. So the substantially competitive power will be eventually formatted on the new type of technological progress which means relying on manpower capital and knowledge.This paper consists of five parts. The first is the introduction, which includes the problems to be studied, the significance, the means and the basic framework; the second is the literature review, which includes the overseas and the domestic research production; the third part is the empirical analysis of technological progress on employment; the fourth part is the theoretical explanation on the effects of technological progress on employment. It is proved that in the long-term the correlation between technological progress and employment is positive by using both theoretical and empirical analysis. Technological progress enables the labor force to transfer from the first industry, the second industry to the third industry; the fifth part emphasizes the importance of quickening technical progress and improving the technological innovative capabilities of enterprises. At last, the paper proposes the countermeasures to enlarge the employment. |