A Study On The Interactive Relationship Between Economic Growth And Labor Employment In Shandong Province

The rate of economic growth and employment level are two main targets that countries’ government policy concerns. Scholars have done a lot of research on the relationship and they have made some achievements. But, their results are not the same because of the difference of research object, research perspective and research methods.Furthermore, there is less study by taking Shandong Province as a sample to search for the relationship. It has the vital significance to the economic growth of Shandong province and an improvement in the employment situation, while we analyses the relationship between economic growth and employment, and explore the dynamic equilibrium relationship between the two.The relevant theories of foreign and the progress of domestic researches were overviewed, and then taking Shandong province’s economy development and employment situation as the research object, we analyzed the evolutionary process of1978-2012 and made a coordinating analysis of the employment elasticity and comparative labor productivity. Through Eviews5.0 software to do cointegration test, we can know that there exist a long-term equilibrium relationship between economic growth and employment in Shandong province. In the short term, the economic growth is the Granger cause of the employment growth, but the labor and employment growth is not the Granger cause of economic growth. In the long term, the economic growth of Shandong province is the Granger cause of its employment growth, the employment growth is also the Granger cause of economic growth.Promoting interaction suggestions such as: changing the mode of economic growth,coordinate the relationship between technological progress and expand employment;continue to promote the adjustment of economic structure, promoting the development of the third industry and the small and medium-sized enterprise; increasing the investment in human capital, the development of vocational education, improve the quality of workers;to perfect the labor market construction and eliminate the institutional obstacles, improve employment services.