Discussion On Reasons And Countermeasures Of China's Unemployment Rate Is High

The problem of unemployment is an important issue in the research field of economics. It is not only a main policy goal in macroeconomics, but also the fundamentality of people's livelihood, which is closely bound up to individuals' lives. It is no doubt that our country develops in the top speed in the world. Our GDP shows that. On the other hand, however, the rate of unemployment in our country does not go down as the economy develops. It is even higher that the figure in the 90s. That fact is obviously going against the theory in macroeconomics. As we know, the rate of unemployment drops in the period of economic development. Then how the situation in China is opposite to the theory showed? The thesis mainly discusses the reason why therate of unemployment keeps on in a high level and the way to release the pressure of high rate of unemployment.Firstly I introduce the theory of unemployment, natural rate of unemployment and labor market segmentation, as well as Okun's Law. Then I analyze the problem of the high rate of unemployment in China in three segmentations: structural unemployment, frictional unemployment and "special unemployment", which has not been mentioned in macroeconomics but exists as a matter of fact. From the analysis, the causes of the higher rate of unemployment in China are appeared. There are the conversation of economic structure, the industrial structure adjustment, the impact of technical advancement, the effect of dual economy, the effect of labor market segmentation, the existence of minimum wage system, the huge amount of the annual increase of employment, and the depravation of the carving out environment.I struggled to find way to reduce the pressure of unemployment then. As I aimed to lower the rate of unemployment in China to normal, we should make our efforts to the aspect as follows: taking care with the relationship between the conversation of economic structure and increasing employment, taking care with the relationship with the industrial structure adjustment and job creation, developing the tertiary industry, developing non-public economies, intensifying new countryside -construction, reforming the household register system and filing & housing system, improving the social security system, building up a forecasting and early warning system in labor market, organization the exporting of labor in a reasonable manner, improving the environment for carving out, and training carving education.