China’s Employment Structure Change And The Savings

With the rapid growth of China’s economy, the amount of savings in our country continues to increase, and the growth rate of the same period is higher than the nominal GDP. It is found that China’s savings rate is significantly higher than the rest of the world in the same stage of development level. Therefore, China’s continuing high savings rate attracts more and more scholars’ attention both at home and abroad, and they tried to find out the causes of China’s high savings. For example, the imperfect social security, cultural habits, underdeveloped financial market, high economic growth and demographic dividend are considered to be the reasons. At the same time, the employment structure changes should not to be ignored. China is most populous country in the world, and population structure change has played an important role in the economic development.With the working-age population ratio increasing, the supply of the labor is gradually increasing too. The agricultural labor force also gradually transfers into non-agricultural industries, entering the field of the higher labor productivity. Even without considering the change of the participation rate, as long as the stock of labor can transfer from traditional departments to emerging departments, the marginal output improved, and then the labor productivity will grow. The external form of the growth is the improvement of workers’ payment, which result in the increase of savings rate. At the same time, the occurrence condition of labor transfer is they can have a positive savings. That is to say, the income is greater than the cost and the labor transfer is possible. As a result, we have reasons to believe that there is a relationship between the change of China’s employment structure and savings.This paper uses Eviews6.0software to measure the relevant historical data from1992to2010of our country, according to the result analysis, and there exists a granger causality relationship between employment structure changes and savings in our country indeed. Then, this paper further studies on three departments’ savings relationship with labor transfer which include the residents, enterprises and government departments. The results are as follows, our country labor transfer is the granger reason of residents and government departments saving, inverse relationship is not established. The enterprises departments’ savings is the granger reason of labor transfer, inverse relationship is not established. Finally, in view of the status quo of China’s high savings and its important influence on China’s economic future, this article focuses on the above the reasons behind the granger causality, and then puts forward corresponding countermeasures and suggestions.