The Empirical Research Of The Influence That Industrial Structure Adjustment Impacts On Labor Force Participation Rate In Chongqing

Since China’s reform and opening up, in the transition period of industrial structure transformation and stable economic development, China’s economic priorities has been focused on the optimization and upgrading of industrial structure, labor force flow, labor culture education and social security, etc. The report of 18th Party Congress make clear that then industrial upgrading transformation is an urgent task to speed up the economic structure transformation, improve the labor quality and the innovation and development. At present, our country is rich in labor resource, characterized by a higher labor force participation rate and utilization rate. However, the inconformity between the speed of industrial structure adjustment and the speed of work force quality improvement, led to the contradictory phenomenon, that is labor shortage and employment difficulty, which brings the problems such as the employment pressure and structural unemployment. Therefore, in order to optimize the structure of labor supply, let the labor demand and supply match to the industry structure, the employment structure match to industrial structure, this paper need to focus on the influence that the "the absorption effect" and "the rejection effect" produced by the industrial structure adjustment impact on the workforce.As the central city of China Western Development, Chongqing’s industrial structure adjustment also made an impact on the local employment. With the rapid development of Chongqing economy, its industrial structure optimizes and upgrades gradually and the labor employment population grow continuously, which makes the workers’ wages rising and the wage difference shrinking. With no doubt, this will attract a lot of labor to flock into Chongqing, which can supply a lot of labor for Chongqing. However, according to the six census data, we find some current situation of labor resources in Chongqing, such as older workforce, lower cultural quality, lower proportion of labor resources, sustained downward labor force participate rate(Zhong Yaoqi, Mi Qingkui,2013). Many scholars concluded that some less developed areas such as Chongqing maybe have appeared some phenomenon, such as "Lewis Turning-Point" and "labor shortage" (Qian Mingliang,2014). As a result, the contradiction between labor supply and demand and the dual phenomenon about the industrial structure optimization and the labor force participation structure change in Chongqing, makes the clear analysis of the influence that industrial structure adjustment impacts on labor force participation rate in Chongqing become an important practical urgency.Therefore, this paper will accord to the scientific and economic research way to carry on the research. From the angle of the effect on employment of industrial structure adjustment, this paper focuses on the related real life phenomenon and related professional direction. By collecting the literature and organizing some related theories, it summarizes the domestic and foreign research findings about industrial structure adjustment, labor participation rate and their relationship. At the same time, based on some theoretical knowledge of related disciplines, such as industrial economics, development economics, demography, labor economics, this paper uses some indexes to determine the possible assumptions in this study, for instance, employment- coordination coefficient of industrial structure, structure deviation degree, the proportion of non-agricultural industries output value, labor force participation rate. This paper adopts qualitative method (literature review method) and quantitative methods (eviews econometric analysis method), analyzing the time change tendency of Chongqing’s industrial structure adjustment and labor force participation rate. By constructing the empirical model, it verifies the influence effect that three industrial structure adjustment impact on the labor force participation rate respectively, analyzing the related research results and putting forward the corresponding suggestions.In general, this paper enriches the theory results of industrial structure and employment, which has important academic significance. At the same time, through the empirical analysis of the influence that the industrial structure adjustment impacts on labor force participation rate in Chongqing, this paper finds that different industrial structure adjustment can produce different impact on labor force participation rate. By analyzing the mechanism that the industrial structure adjustment impacts on labor force participation rate, this paper masters the influence channel and effect factors. So, this paper has much more important practical guiding significance to transform the industrial structure and economic structure, to balance the urban and the rural development, to promote the urbanization of rural migrant workers, to promote the absorption of a large number of rural surplus labor force.This paper contains two primary issues. On the one hand, how does the industrial structure adjustment impact on the labor force participation? How about its impact route? On the other hand, how about the effect that industrial structure adjustment impact on the labor force participation? Centered on the issues, this paper has researched three main contents. The first is the effect analysis that the industrial structure adjustment impact on the labor force participation. The second is the develop trend of the industrial structure and the labor force participation. The last one is the empirical analysis that the industrial structure adjustment impact on the labor force participation.The main research conclusion of this paper is as follows.1. Structure deviation degree (on behalf of the industrial structure rationalization) and labor force participation rate have negative correlation. Namely, the lower industrial structure deviation, the more reasonable industrial structure, the higher labor force participation rate, and vice versa. If the industrial structure is in the reasonable condition, the structure unemployment can be avoided, which can let the industry structure and employment structure reach the match state to avoid a large number of idle labor force.2. The proportion of non-agricultural industries output value (on behalf of the upgrading of industrial structure) and labor force participation rate have negative correlation. Namely, the more advanced industrial structure, the lower labor force participation rate, and vice versa.3. The influence effect that the proportion of non-agricultural industries output value impacts on labor force participation rate is much higher than the influence degree of the industrial structure deviation. The ability that the upgrading industrial structure rejects labor force is much higher than the ability that the industrial structure realization absorbs labor force, which eventually leads to the labor force participation rate present decrease level.4. The change level of labor force participation rate will be affected by its’ lag period and the degree of influence is very big, which is related to the stability of working-age population in a short period.In general, in order to promote employment, improve the quality of labor force, express the rationalization’s ability of absorbing high-quality labor force fully, this paper suggests that implement and promote the "public entrepreneurship and innovation" strategy, optimize the industrial structure, consummate the social education and the system of society guaranty, which can let the industrial structure and labor structure achieve the reasonable and matching state.