On The Change Of Labor Costs And Its Impact On The Economy In Sichuan

In recent years, the community is concerned about the changes in labor costs. In the2012statistical bulletin, the National Bureau of Statistics pointed out that the absolute number of the labor force fell for the first time in China; the cost of labor has become a hot issue once again. The dual nature of the price of labor determines its important position in living, survival and development and the country’s economic development.Sichuan is a major agricultural province, rich labor resources, but in recent years with the rapid development of the economy and the arrival of the Lewis turning point, the rapid rise in labor costs in the province makes the economy is facing a complex situation. On the one hand, the rising cost of labor makes the enterprises are faced with the adjustment of industrial structure, enhance the capability of independent innovation pressure; other hand, rising labor costs is conducive to expanding domestic demand and promoting regional economic growth. In this context, the study of changes in labor costs in the province and its economic effects have important practical significance.Firstly, to focus on the concept of text definition and combing, summed up China’s rising labor costs related to theoretical research, a comprehensive description of the research results at home and abroad, on this basis, according to the data of Sichuan changes in labor costs, changes in labor costs the current status of the profile. Measure of wages of workers in the labor cost base, and growing fast. Province from1992to2011, the average wage of workers increased by15.43times the average annual nominal growth rate of15.49percent, especially in the last two years, the government raised the minimum wage and the companies pay two measures, labor costs are more substantial rise.From the rate of growth in general maintained a high growth rate, the average annual growth rate of15%. Indirect labor costs as the representative of the social insurance has soared, with the gradual establishment of the urban social security system, the level of social insurance benefits have been further improved. Five of the total amount of the province’s social insurance fund collection in2011reached117.79billion, an increase of2.7times in2007. On the other hand, income between urban and rural areas of our province and expenditure differences in labor cost differences between different regions, industries, and the nature of the enterprise.Next, the reasons for the increase in labor costs is the system, comprehensive and detailed exposition of the relationship between supply and demand changes in the cost of living, government policies and regulations, the quality of workers and labor productivity to act on labor costs, resulting in the province of rising labor costs.Then combined with the actual research for this article, select Sichuan Province, per capita GDP, the urban consumer price index, the average wage of urban workers, the total profits of industrial enterprises, urban residents’ consumption of the indicators of the effects of rising labor costs, the use of vector autoregressive model (VAR) Empirical examine the impact of rising labor costs on residents, micro-enterprise, regional economic development and even the national economy as a whole health, Granger causality test and impulse response function study workers’wages and consumer price index, the long-term economic growth dynamic equilibrium relationship. Finally, on the basis of the analysis of the underlying theory and model, practice, given the trend of the future labor costs, and changes in labor costs given the corresponding countermeasures and suggestions.