Study On The Relation Between Chinese Economic Growth And Unemployment

Since reform and opening up, particularly in the mid-1990s, the Chinese economy hasmaintained a relatively high growth rate——over the average annual growth rate of 9 percent,but at the same time, the registered urban unemployment rate has increased year by year. Therefore, studying the applicability of Okun's Law in China, revealing the relationship between Chinese economic growth and the unemployment rate has important practical significance.In this paper, on the basis of theoretical analysis, from the perspective of hidden, estimating unemployment in rural areas and towns of hidden unemployment rate, and from the perspective of macro-economic cycle, estimating GDP rate of migration, consequently, using the unemployment rate and GDP rate of migration to explore China's unemployment rate and economic growth mode. Analysis shows that the long-run equilibrium exists between Chinese economic growth and the unemployment rate, but positive correlation between the two, and no causal relationship between; From a macroeconomic perspective, selecting the cycle indicators of economic growth to analysis a number of factors affecting the unemployment rate. Analysis shows that the total fixed asset investment has the greatest impact with the unemployment rate, of which foreign direct investment is one of the main factors, so the implementation of foreign direct investment location transfer, increasing the intensity of the backward areas of introduced and speeding up from developed areas to the backward areas of industrial transfer is an important way to reducing the employment rate. On the basis of the empirical analysis, studying thephenomenon——"high growth and high unemployment", and making appropriate policyrecommendations...