Change In The Exchange Rate Of The RMB And Employment Of The Labor Force In China

The change in the exchange rate of RMB will affect many aspects of Chinese economy.What beneficial effects on economy and what effects inimical to economy has long been the focus of academic community.However,some issues are less mentioned,for instance,the relationship between change of the RMB exchange rate and employment,one of the important measures of economic development and social stability;the channels through which the change of the RMB exchange rate influence the employment;the measures China should take to stabilize the employment rate when there are changes in the RMB exchange rate.It is clear that a careful analysis of these issues will have a great practical significance for the economic development in China.Firstly,the paper introduces some related concepts of employment and exchange rate,focused on the difference between the nominal and real exchange rates,price index that impacts the calculation of real effective exchange rate,characteristics of the labor market and the present situation and major issues of labor-intensive industries in China,and reviews the academic study of the relationship between the change of exchange rate and employment and explains the research characteristics of this paper.The second chapter depicts the present situation of RMB and employment in China,and explores the correlation of change in the RMB exchange rate and fluctuations in employment.The third chapter analyzes mechanism of the impact of changes in the RMB exchange rate on the employment in China.The change in the RMB exchange rate indirectly acts on the employment mainly through foreign trade, investment and consumption.Under the same condition,RMB appreciation will cause the decline in employment through the three factors,and vice versa.According to the analysis in the previous chapters,the fourth chapter makes analysis from exchange rate changes to stimulating the economic development of our country,and then to the employment transmission mechanism.Aiming at the impact of change in the RMB exchange rate on employment,the paper sums up the main conclusions and propose policy recommendations.