Present Pension Insurance System Influence Employment In China

This paper focuses on the present pension insurance system's influence onemployment in china, and in order to establish a system that can be benefit to fullemployment. Employment and pension insurance complement each other, and are themajor issues our country faced now. The pension insurance system provides the best riskcircumvention way for employees, and if the employment is well solved, it can reduce thepressure of insurance fund and be prepared for the source of it.The pension insurance system has developed more than 50 years in our country, Itdisplays many characteristics, such as covering narrow, diverse, huge hole of found,heavy burden of enterprise, low social plan level, insufficient system incentivemechanism, lagging legislation, low management socialization and specialized degree etc.As employment situations in our country are following. Labor force supply exceedingdemand, employment pressure high. Labor employment marketed and simplified. Theemployment forms are diversified and transient employment population are huge. Thepension insurance system obviously can not adapt the present employment situation well;such shorts have adverse effect on the supply, demand, quality, and liquidity. Thediverseness and lowly plan of system obstruct the liquidity of the labor and the balancebetween supply and demand. Narrow coverage turn against the diversified developmentof employment forms. Highly payment rate and heavy burden of enterprise makecapital instead of the labor, and produce substitution effect. Dispersive managementhinders the harmonious development of pension insurance and employment, affectingthe realization of full employment.Our pension insurance system should reform and improve base on employment.Countryside and city develop planning in entirety, and system must combine fairnesswith efficiency, and has moderate level and wide coverage. It also has overallarrangement and fine "portable nature". The enterprise burden reasonable and systemhas stimulated employment well.The legislation system is complete and authority, the law enforcement is strict.Management is specialization, standardization and socialization. The system also should be coordinate with the employment system and the employment situation, adapt to eachkind of employees of the city and countryside, and promote full employment.