Research Of The Relationship Between Flow Labor Employment And Economic Development In Shandong Province

Along with the rapid development of China's socialist market economy, Large number of rural surplus labor are released from the first industry to the second and third industry,for the reasons of the implementation of the rural household contract responsibility system and the rapid development of agricultural technology, since the reforming and opening. This part of the labor force has been flowing into the second and third industry for pusuing the higher labor income,and has been forming a large scale in recent years.The vicious effects of U.S.financial crisis have spread around the world since the second half of 2007, which leading to a large-scale enterprises in China coastal areas shut down and transfer their businesses to the lower labor cost regions,and this kind of enterprise restructuring in the nationwide distribution, will bring resources, especially the adjustment of the labor resources,which starts from the large-scale movement of laboring. The key issue related to the acceleration of urbanization process and agricultural modernization is the transfering employment of the rural flow labor,which also is critical to social harmony and stability and the smooth going of the new rural construction. Therefore, research on the flow labor employment has great significance.The main purpose of this paper is not only to explore what kind of relationship between the flow labor force and economic development,but also the causes of the differences between this two factors.Base on the comparative analysis of the employment structure and elasticity in the three industries, this article tries to find the correct ways to promote the employment of flow labor in Shandong Province,and put forward corresponding policy recommendations. The first and second parts of this paper review the theory and literature at home and abroad, which related to the flow labor. Then in the third part, by using three kinds of statistical methods,which are Granger causality test, cointegration and error correction model, we will give a deep analysis to the relationship between employment of the flow labor and economic growing standing on the actual situation of Shandong Province, and we found that this relationship is different from the one between traditional employment and economic development, which give the conclusion that the flow labor employment is not the granger cause of the economic growth, but the economic growth can lead to a large extent employment of the flow labor. After analyzing the conclusion in the fourth section, this article tries to found the the significance of the flow labor employment to the economic development.And in the fifth part, this paper will find out the correct ways to promote the employment of flow labor employment in Shandong Province,and put forward corresponding policy recommendations.By adequate empirical testing and analysis, the sixth part will put forward the following policy recommendations for advancing the employment of the flow labor force:First, to accelerate the industrial upgrading, in order to coordinate the industrial structure and employment structure;Second, to improve the relevant policies and regulations, so as to eliminate barriers to transfer labor force;Last, to perfect the functions of government services,which will create good conditions for the employment of flow labor.