Guangzhou Development Zone, The Labor Market Operation And Policy Research

Guangzhou Development District has contributed to the quickdevelopment of economy in Guangzhou; it plays an important role increating employment, upgrading technology, increasing tax, developingeconomy and so on. Labor force is an activity factor of production, itis the foundation power to construct and develop the District, and it isthe motive force to stimulate economic growth and promote the optimizationof the industrial structure. Labor market is a kind of mechanism and form,which goes on the purchase and transfer of the right to use the labor forcefor both demand-side and supply-side, and which accomplishes theallocation of labor force. The condition of the labor market influencesdirectly the use of the labor force, and then affects the development ofthe District. If the labor market is well developed and has a goodoperational mechanism, the allocation of labor force will be morereasonable, and the use of labor force will be more effectively, and theeconomy development of the District will be more conducive ultimately.Otherwise it would easily lead to waste of labor force and would not beconducive to economy development.The District is important for the economy development in Guangzhou,and the labor force and labor market affect the survival and developmentof the District and its enterprises. So the paper will research the labormarket of the District from the point that how the labor market run andhow to manage it, different from previous studies which from regionaleconomic or enterprise strategy point and so on, and the paper will givesome suggestions through the human resource and the employment policypoint to enhance the development capacity of the District.By the techniques and principles such as document research,questionnaire survey, quantitative analysis, theoretical model to development district, labor market principles and internal labor marketprinciples, with survey data the paper studies how the labor market inGuangzhou Development District works and how the internal labor marketin enterprises works, and studies their characteristics. And then thepaper gives some suggestions through drawing lessons from the Westemployment policies.The results show that:(1)Labor market in Guangzhou Development District brought forth newideas of the legislation and the system of organization from the beginningof its building; and it has achieved approaching international practiceand played an exemplary role in Guangzhou and the whole country throughbold reforms. However, the creativity of the District must be close tothe institution and regulatory of the country along with the developmentof the country economy and the gradual improvement of the market economy.At the moment, the important points in the building of the labor marketare social security system and vocational training system.(2)The enterprises in Guangzhou Development District lie in thespecial area; they can accept the advanced management methods moreconveniently and more directly. So the development of their internal labormarket is more rapidly and more standard; and it emphasizes that theymanage the labor force such as allocating and training through theinternal organizational statutes, rules, systems, practices and so on.The industrial relations between labor force and enterprise make themigration, allocation and wages of labor not only depend on pricingmechanism of external labor market, but also depend on other factors suchas long-term planning, wage institution, employment practices andmanagement rules in enterprise. Internal labor market is the supplementof the external labor market; and it is one of the main methods thatenterprise carries on human resource management. The paper in the last gives some suggestions to the construction anddevelopment of the labor market in Guangzhou Development District, withtwo key points on the following:(1)We should improve the social security system. First, we canflexibly impose the social security cost, and we should give fullconsideration to the capacity of the small and medical enterprises in theDistrict and should enable them to better grow and develop. Second, itis necessary to expand the coverage of social security, and we shouldenable migrant workers to enjoy the rights of social security.(2)We should develop vocational training system. GuangzhouDevelopment District is an industrial area, and it needs more skilledworkers. So the education system of the District can follow the way thatcombines diploma and technician certification.