The Study On Relationship Between China’s Tertiary Industry Development And Employment Growth

The vigorous development of the third industry on a global scale is the objectiverequirement of modern economic development. Its development level is an importantsymbol to measure a country’s economic level and modern level. Tertiary industry hasan important role in alleviating employment pressure. Therefore both developedcountries and developing countries regard tertiary industry as an important way tosolve the employment problem. Since reform and opening-up, China’s tertiaryindustry obtained rapid development and made important contribution to employment.However, compared with developed countries, China’s tertiary industry is relativelybackward. At present the employment proportion of tertiary industry in developedcountries is generally over60%, and some even more than70%. Tertiary industry hasbecome the main industry of employment in developed countries. China’s tertiaryindustry employment accounts for less than35%, the tertiary industry has much roomfor development in absorbing labor force. Accelerating the development of tertiaryindustry can reduce the pressure of employment in China, which is an important wayto expand urban and rural employment and achieve the transfer of surplus labor.This article analyzed the development situation, development characteristics andthe existing main problems of China’s tertiary industry. It clarified the importantstrategic significance to develop the third industry. Besides, the paper analyzed theemployment status and employment situation in our country. Have an empirical studyon the relationship between China’s tertiary industry development and employmentgrowth on the basis of previous analysis. Through the comparative analysis onemployment elasticity of the three industries, the paper further study on the ability oftertiary industry to absorb the labor force. The paper mainly got the followingconclusions:There is a long-term cooperative interaction and short-term dynamic relationshipbetween the tertiary industry and employment growth. When tertiary industrydevelopment deviats from the norm, it will quickly adjust to equilibrium. But thechange of employment growth is mainly based on short-term fluctuation. Tertiaryindustry lag has a significant impact on the current value, and it is a cumulativeprocess. As the internal structure of tertiary industry is not reasonable, the ability to absorb employment has not been brought into sufficient play. Tertiary industry hasmuch room for development in absorbing labor force, our country should speed up thepace of labor force transferring to the tertiary industry.Labor input is an important factor in the development of tertiary industry, andemployment factor promoted the development of the tertiary industry. Employmentelasticity of the third industry is greater than the first and the second industry. Thefirst industry has a large number of surplus labor force, which transfer to the secondand third industries. The ability of the second industry to absorb labor is sharplyreducing. With the development of economy, the tertiary industry has become themain channel to absorb labor. Wholesale and retail trade, hotel and restaurant industry,resident services, the real estate industry and financial sector in the tertiary industrycan greatly promote the growth of employment.