Study On The Employment Effect Of The Modification Of China’s Service Industry Stucture

China is actively promoting the upgrading of the industrial structure. From the view of the current development service industry and the employment,the economic development dilemma can be summarized as the following two aspects. First, the industrial structure of our country is relatively backward and the third industry keeps the low level. Second, due to the development of urbanization and higher education, the employment problem in China is more and more outstanding. Therefore, our country is faced with the problems of coordination employment goals and labor service industry structure upgrading. On the premise of guaranteeing and promoting employment, choice of industrial upgrading path is worthy of our deep thinking. Theoretically, the study on the employment effect of service industry structure upgrading can expand the research paradigm of upgrading the industrial structure, and will enrich the theory of employment. In reality, on the one hand, it helps to solve the employment problem of the current hand, and promotes the development of service industry. On the other hand, it makes the service industry structure and employment structure advanced. In the third chapter, on China’s service industry structure status, migrant workers employment situation, college students employment situation analysis, and based on the industry value chain analysis of the causes of structural unemployment.Based on this, this paper firstly defines the connotation and upgrading of industry structure. On the basis of the service industry factor intensity, the paper divides service industry into labor intensive, capital intensive and technology intensive The upgrading of service industry means the proportion of the capital intensive industry and technology intensive service industry output value and number of employees grows. In the fourth chapter, we construct the theoretical mechanism of employment effect and upgrading of industry structure. Effect of employment and upgrading of industry structure contains the scale effect and structure effect. Among them, the scale of employment effects are achieved by two ways including dominant mechanism and implicit mechanism. On the one hand, the development of their own industries can create jobs, thereby generating employment effect; on the other hand, industry and other industries associates with each other, through the supply and demand matching approach effect, industry association effect, innovation effect, and its development can promote the development of related industries, resulting in indirect employment effect. The impact on the employment structure is mainly embodied in two aspects of the quality of employment and the allocation efficiency. When a country’s service industry structure changes, technology intensive service industry replaces labor intensive industry as the leading industry of the country, and labor may transfer orderly. Structure of service industry to make labor resources transfer from low productivity to high productivity sectors of industry, thereby improving the working efficiency of resource allocation.In the fifth chapter, according to the reality of our country, we make empirical tests of the theoretical mechanism. Through cointegration analysis, impulse response analysis, input-output analysis, technology intensive service industry has the highest employment elasticity of employment creation, sustainability and indirect employment effect. In order of decending is capital-intensive and labor-intensive sevice industy. Through statistical analysis, structure of service industry upgrades the employment quality of the same degree. The employment proportion of technology intensive service industry increase, and the wage gap between different industry continues to narrow, which improves the efficiency of labor resource allocation. At the same time, through regression analysis, the level of per capita GDP, the level of urbanization, the level of the market, the investment in fixed assets are the main factors affecting the employment effect of China’s service industry structure upgrading. Finally, in two aspects of promotion of College Students’ employment migrant workers employment, we put forward enlarge technology intensive service industry and optimize the labor intensive service industry structure policies.