The Influence Of Employment With RMB Exchange Rate Fluctuations

Since 1978, with the reform and opening up of China, China’s economy has a rapid economic development, by 2015 the country’s total economy has reached 67.6708 trillion yuan. In addition, in terms of foreign trade, China has completely reversed the trend of foreign trade deficit which is a common phenomenon peior to 1989, trade surplus continues to expand. However, the RMB exchange rate continue to rise after the implementation of exchange rate reform in China.The appreciation of RMB makes the external competitiveness of our products decline, export-oriented trade export volume decreased, thus resulting in reduced corporate demand for workers and the impact of China’s labor employment. Our country has a large population, huge population gives a huge employment pressure in China. Employment has been the focus of scholars in the field of research, to solve the problem of employment has a great significance to improve people’s life and production and promote harmony and stability of society. But in the current domestic and foreign researchers, research on the impact on the exchange rate of employment is not much discussed, particularly lacking of discussed in detail for the employment situation in developing countries. With the influence of the global financial crisis and the European debt crisis, The Global economy has a lack of motivation, wherever China’s economy is in a deep period of adjustment, which result its employment situation grim. This article has a important theoretical and practical significance, which based on in-depth analysis of China’s current situation. This article follows the rule which combined the theory qualitative analysis and quantitative analysis of the law in the actual writing process. Then we analyze the impact of RMB exchange rate fluctuations on employment. It is divided into five parts.The first part introduces the article writing background, purpose and significance, highlighting research methods and research content at the conclusion on the basis of domestic and foreign exchange rate fluctuations on the impact on employment. The second part describes a series of theories which is the influence on employment with RMB exchange rate fluctuations. Focusing on the theory of exchange rate, employment and the impact of exchange rates on employment, we has explained the concept of exchange rates, unemployment and employment, employment in today’s mainstream theoretical perspectives. We focus on the impact of exchange rate fluctuations and model pathway to employment, to lay the theoretical foundation for the empirical part of the established model. The third part is the qualitative analysis part, firstly we recalled the history of the RMB exchange rate fluctuations and the reason of the performance of each stage of the RMB exchange rate fluctuations. Secondly we show the fluctuation of RMB exchange rate through the past 20 years, which preferably close to the status quo through the real exchange rate index and indicates future trends. Thirdly with the help of graphics, tables, etc., we know the Employment Situation of nearly two decades, at the same time it indicates the problems in employment. The section 4 is empirical analysis section. we analyzes the impact of RMB exchange rate fluctuations on employment from the perspective of specific empirical. According the discussion in the previous section, the RMB exchange rate fluctuations on employment have an effect by GDP, trade balance and foreign direct investment these intermediate pathway. In order to study the influence of employment with RMB Exchange Rate Fluctuations,we use three VAR iables in VAR model, and ultimately build a simple time series model, and through this model to analyze the RMB exchange rate fluctuations on the employment. At last the results show that: the RMB exchange rate fluctuations in the short term has a negative correlation relationship with the employment, but in the long-term RMB exchange rate fluctuations on employment showed a positive correlation, but the impact weaker than in short term. The part 5 is the policy recommendations section. In order to solve the existing problems in our current employment, we proposed some countermeasures from the aspect of the perspective of the RMB exchange rate appreciation, the economic point scale, foreign direct investment and employment angle.