China's "high Growth And Low Employment" Phenomenon, Deep Reasons And Countermeasures

After reforming and opening to the outside world, our country developed fast,while the rate of employment kept on a low level. Only when the gold of fullemployment comes true can we say that the fruits of development shared by the people.Though China has a population of1.3billion, due to various reasons, we have to facethe serious problem of employment in a long time.This paper analyzed the profound reason of the phenomenon of "high growth, lowemployment" under the perspective of labor supply and demand. Then, it put forwardcorresponding countermeasures and suggestions. Firstly, it analyzed theories abouteconomy development and employment, also introduced the problem of "high growth,low employment" by testing whether the classic Okun theory applied to China.Secondly, it analyzed the employment situation on the side of labor apply and pointedout that Chinese labor supply can be devided into there sections of rural surplus laborforce, college graduates and redundant members of the state-owned enterprises.Thirdly, under the research of labor apply, this paper mainly analyzed our labordemand:(1)From the perspective of the total economy, through analysis of the effect ofChinese economic growth to expand the demand for labor, this paper found that therapid growth of the economic development didn’t match the low speed of employmentincrease. And the ability to create demand for labor was gradually declined in thedecades after the "Ninth Five-Year Plan”.(2)With the quantitative analysis of theindustrial structure, the frame bridge between macro-economic and micro-economic, itfocused on researching employment problem with the effect of economic structure. Bythe analysis of the rationalization and high-class of industrial structure in our country,we argued that in the rationalization of industrial structure, the structural distortion ofthe economic structure and labor demand is the main reason of the problem of”highgrowth, low employment”.(3)It research the practical reasons, mainly from the aspectsbelow: development strategies and policies, the imbalance of economic demandstructure, deviation between the industrial structure and employment structure, as wellas changes in the ownership structure. Finally, it made conclusions of the article, andput forward corresponding countermeasures and suggestions:(1)We should develop labor-intensive industries in the secondary industry in order to absorb employees.(2)Increase the investment in education and develop the modern service industries, sothe college graduates and people with some skills can be absorbed to work.(3)We maydevelop the traditional service industries and increase professional training to absorbthe new generation of farmers who’d like to work in the city to successfully find jobs.(4)Further tap the potential of the first industrial development, so that more demand forlabor can be created.