Research On The Effect Of Informal Employment To China's Tertiary Industry Development

The problem of employment has always been an emphasis in the study of economics, and the study is now focused on the informal employment owing to its great contribution to our country in improvement of the current difficult employment situation and mitigation of poverty. Ever since 1990s, especially since the government-supportive promotion of informal employment in Shanghai, China has experienced a sharp increase in informal employment almost in every field. Informal employment has an important role in promoting China's economic development and in solving the employment problem of China at this stage.In recent years, with the accelerated adjustment of industrial structure, China's tertiary industry has developed rapidly. Although, to some extent, this has improved an unreasonable proportion of three industries, but the fundamental problem has not been resolved. At present, in the proportion of employment and GDP accounted for the national economy, the tertiary industry are still at a low level. In the meantime, the rapid development of informal employment has become an irresistible trend. Because the employment situation is in the tertiary industry account for a large proportion, so it will certainly have an impact on China's tertiary industry. In this paper, the theoretical analysis and empirical analysis methods are used to study the relationship between the tertiary industry and informal employment, and the final study results indicate that informal employment is the cause of promoting the development of China's tertiary industry. Finally, a number of policy proposals have been put forward to resolve some problems in the development of informal employment.This article can be divided into three parts:Firstly, the development of the informal employment and tertiary industry are analyzed, through it, we find that with the development of economic and social, informal employment and the tertiary industry are all developed rapidly. Then, the sources and composition of informal employment in China were introduced, through which the conclusions that informal employment is mainly engaged in low-skilled, informal work and the main body of informal employment attaches to the tertiary industry have been proposed. Based on these studies, the impact of the tertiary industry by informal employment has been analyzed, and the fact that informal employment has a positive impact on the development of tertiary industry was found.Secondly, the study found that informal employment has become an important force in the development of China's tertiary industry through research of the role of informal employment. Informal employment has contributed to employment, output and revenue of the tertiary industry. The birth and growth of informal employment has a theoretical basis and fits the situation of our country. Therefore, to achieve the goal of rapid development of tertiary industry, informal employment development is absolutely an area that can not be ignored.Finally, the problems of informal employment which are focused on the obstacles of investment in human capital and unemployment risk has been studied, to solve these problems, this paper presents policy recommendations to promote the development of informal employment.There is a great potential in the development of informal employment. It is not only an effective way to solve the unemployment Problem in our country, but also an important force to improve the industrial structure and promote the development of the tertiary industry in China. Taking into account the problems of non-regular employment, the Government should formulate policies to encourage and support the development of informal employment; the healthy, sustainable development of informal employment can eventually stimulate and promote sound and fast development of the tertiary industry.