An Analysis Of The Employment Effect Of Economic Growth In China

Since reform and opening up,China's economy achieves 30 years of sustained and stable growth.From1978 to 2008,the average annual GDP growth rate reached 9.3 percent.In recent years,the economic growth reaches even more than 10%.The momentum of economic growth is good.However,accompanying growth in employment exist greater differences with economic growth.In the beginning of reform and opening up,the employment growth rate was 2.17 percent.But now down to 0.77 percent.The extrude employment effects is apparent and absorb employment effects is degressive.High growth and low employment phenomenon coexist. Economic growth and employment are important parts in macro-economic.If the simple pursuit of high economic growth while ignoring the employment effects,will lead to the deterioration of the employment situation and is not conducive to the sustainable development of China's economy.This article from the China's national conditions,analysis the employment effects of China's economic growth since reform and opening up,and give results based oh an analysis of China's economic growth to improve the employment effects.In the end,gives measures to promote economic growth and employment growth get a good fit.This article is mainly composed by four parts.The first part is the preface,the main topics it includes the background and significance of the study,and the review on later literature as well as the idea and the methods of the research,and the introduction about the frame structure of this thesis.The second part sums up and analysises the employment effects of economic growth involving the main theory.First of all,it introduces "Okun's Law",which is the most direct reflection of economic growth and employment relations theory.The law points economic growth can boost their own employment and make employment and economic growth to maintain a certain proportion of the relevant changes in the relationship.Secondly,an analysis of Keynes's theory of the employment effects.The theory concidered that economic growth will automatically reach a state of full employment,but for a long-term economic growth's employment effects is lack of explanation.On this basis the introduction of economic growth Harold - Thomas model considered:On the one hand,in the short term,the actual growth rate will enhance the increase in employment;on the other hand,in the long run,economic growth in the ideal state achieve full employment are the balanced growth,but this ideal is difficult to achieve.When the assuring growth rate is lower than the natural growth rate,the employment effects of economic growth appears insufficient.Third, analysis of the Solow model's employment effects of economic growth. Employment growth rate and economic growth's changes in theory are the same, relatively rapid economic growth will push the corresponding growth in employment. To take a higher degree of labor-intensive modes of production,reducing the capital-output ratio can increase employment,but also to maintain stable economic growth. Finally,since the 20th century,the United States and other countries get a high economic growth and high unemployment.And the non-employment growth model advanced.It is described on the base of analysising and summarizing the domestic economists' opinion.Most of these analysises make the conclusion that current economic growth's employment effects in China is deficient.For further study,it apply measures to improve the employment effects.The third part gives a overall study on China's employment effects of economic growth since reform and opening.From the economic growth rate and employment growth rate's changes in the relationship,we can see that the relationship between economic growth and employment growth is more and more unconspicuous.The employment effects of economic growth depends not only on the economic growth rate,but also depends on the employment elasticity of economic growth.After reviewing the employment flexibility and three industries' employment elasticity at different periods of economic growth,the general economic growth absorbs more obvious employment effect and highlight the crowding-out effect can be drawn. Particularly in the three industries the employment effects have their own characteristics.These characteristics are affected because of some factors include macroeconomic policies,employment system changes,economic restructuring, changes in industrial structure,technological progress and the dual structure of rural surplus labor as the main factors.Macroeconomic policies and employment system belong to the system-level factors.With the continuous improvement of economic system and the adjustments of macroeconomic objectives,their impact on employment effects are more and more weak,and now stabilized.Macroeconomic policy in the early days did not focus on the employment issue.But as counter-cyclical policies focused on the economic situation.Thus its employment effects are inverse effect.Employment systems are in contrast with the rigidity of the system in early times affect the release of crowding-out effect.Thus when the employment system changes,the employment situation worsen.However,in recent years,macroeconomic policies concern about the employment problem.Employment system has also shift to market-oriented employment system,and thus the two effects play a positive role on promoting the employment.Economic restructuring,industrial change and the transfer of rural labor force factors on economic growth's employment effects are sustained.The whole process creating jobs and extrude employment.In the short term it is inhibitory effect,but the final result must be tended to create more employment and effective digestion the extrusion of employment.Technological advances will have an effect on the employment effects at all times.Promotion and inhibition co-exist.Finally,based on the preceding analysis,we can elicit the basic judgments of China's economic growth's employment effects:China's economic growth will increase employment,generate employment growth.However,because economic growth absorbs the existing employment as well as extrude employment, economic growth will not necessarily bring about a corresponding increase in employment.After reform and opening up,China's economic growth pattern has shifted,in addition to the industrial structure,urban and rural social structure changes and other factors,current employment effect is not obvious.However,in a long term, the employment effects of economic growth has the potential development of space. The adoption of positive measures could improve the employment effect of China's economic growth.PartⅣin front of relevant research,gives the policy against the influencing factors which are constant adjustments,in order to enhance economic growth's absorption of employment effect and digest the employment crowding-out effect.It requires the government and whole society make efforts together,concern with employment issues,achieve mutual benefit of economic growth and employment growth.The core measures include increasing the tertiary industry employment,to absorb the workforce extruded by industrial structure change and economic restructuring;promoting development of medium and small enterprises,give full play to the advantages in promoting employment;guiding the rural labor force transfer,to properly resolve the issue of employment of rural labor;strengthening vocational training,needs of makes the workforce to adapt to employmental need from the fundamental;encouraging and support national entrepreneurship,change of employment ideas,broaden employment channels.