Analyze The Impact Of RMB Exchange Rate Volatility On Employment Rate

Changes in the exchange rate of a country will not only impact on their balance ofpayments, but will be significant impact on its domestic inflation, economic growth rateand employment rate. Affected by globalization, the economic status of our country issteadily rising, China’s current exchange rate policy and the development of the domesticeconomy, making the RMB exchange rate issue has been a hot international issues in thecurrent period, the RMB exchange rate impact of our country’s economic developmentand foreign economic relations is an important problem. In recent years, China’seconomy has made successive years of high-speed development. Because the tradesurplus increased with some developed countries, led by the United States strongly urgethe appreciation of the RMB, and hope to improve so as to reduce the trade deficit withChina through the real exchange rate of RMB. Since2005，our country based on marketsupply and demand basis，with reference to a basket of currencies, a managed floatingexchange rate system. Years of the exchange rate reform, the RMB exchange rate to largefluctuations, and the upward trend. Changes in the exchange rate, currency appreciationwill inevitably have an impact on the country’s economy, exchange rate fluctuations inthe most direct impact on the exports, thereby affecting the country’s internationalbalance of payments. Thus the adjustment of the exchange rate policy graduallydepending on whether it is conducive to the international balance of payments However,in recent years, due to frequent fluctuations in the exchange rate，it is found that theexchange rate fluctuations will have a huge impact on domestic employment.Thenational average employment status should also largely affect the decision of exchangerate policy.This article draw on the research of scholars and the analysis of our country’s sforeign exchange rate changes in recent years.First, from the theoretical aspects, to studythe impact of exchange rate changes as and the as changes in the employment rate of theinfluencing factors, to find out the link between the exchange r ate and the employmentrate, analysis of the transmission mechanism between them. The second step, combinedwith China’s specific national conditions, to analyze the impact on the employment rate of the RMB exchange rate movements in our country, Build econometric linearregression model, specific analysis of the relationship between the exchange rate and theemployment rate. Finally, according to the results of the study,and combined with thespecific national conditions, Proposed policy recommendations to improve our countryemployment rate.Sustained balanced economic growth, high employment rates, a stable price leveland the international balance of payments of our country macroeconomic objectives.High employment rate and the international balance of payments have a direct impact onChina’s economic stability and healthy development, changes in the exchange rate policyto a large extent and impact of these two issues, And our country is a big country of1.32billion of the total population, and790million economic active population, the laborsupply increased rapidly, little economic fluctuations will cause a lot of labor employedor unemployed, while the nominal exchange rate and the real exchange rate adjustmentwill inevitably our macroeconomic impact, including import and export, employment,investment, and economic growth, which will influence each other. Few scholars to studythe impact of exchange rate changes on employment. This study between the exchangerate and the employment rate has a very important practical significance. This study candeepen our understanding of the link between the exchange rate and the employment rate,Analysis of exchange rate adjustment impact on employment, further analysis of theeffect of the appreciation of the RMB exchange rate on employment, and to explore waysand means out of raising the employment rate, thus contributing to the healthy and stabledevelopment of China’s social economy, improve people’s living level.