The Study On The Employment Effect Of Economic Growth In China

The lasting rapid economic growth of China has not increased employment accordingly. In the mean time, the imbalance labor supply and demand and the structural unemployment led by change of economic development mode bring China unprecedented pressure. As foundation of people’s livelihood, employment closely relates to the vital interests of the masses as well as the grand goal of building a moderately prosperous society. By researching the employment effects of economic growth in China of each stage after the Reform and Opening and how economic growth influences employment effects, a more rational understanding of China’s current situation of employment will occur.Firstly, the dissertation analyzes employment effects of economic growth in different stages separately by employment elasticity and finds out rapid economic development made great contribution to employment. However, the relevance of economic growth rate and employment growth rate becomes less and less evident as time went by. The employment effects of economic growth experienced a downward trend with a relatively low overall employment effect for a long while. Secondly, the dissertation study the changes of employment effects caused by economic development from the perspective of changes in factors of economic growth. According to the outcomes run by CES production function, labor is gradually replacing by capital and development of technologies is another reason why the employment effects of economic growth in China remains a relatively low level in a short run. Thirdly, the dissertation researches the influences of ownership structure, industrial structure and urban-rural dual economic structure on employment effects, mainly focuses on employment structure of the second and third industries. Last but not least, the dissertation gives out certain implications on policies for improving employment effects based on the studies above.China’s low employment effect could only partly reflects economic development’s capacity to absorb employment. With the adjustment of economic structure and progress of technology, China’s capacity of absorbing employment is becoming increasingly high. Employment effect of economic growth will positively make progress and the potential capacity is under excavation for further development.