Research On The Employment Effect Of Modern Service Industry

Modern Service Industry should have priority to be developed, and it is important to improve ability of Modern Service Industry to absorb employment, which will help solve two major problems: industrial restructuring and employment. This paper investigates employment effect of Modern Service Industry from scale and quality. In terms of employment scale, direct employment effect and indirect employment effect are taken over, focusing on analysis of mechanism and measuring of indirect employment effect with the method of input-output. Employment quality effect is inspected from three aspects of regional structure, personnel structure, wages differences. In research of regional structure, this paper inspects spatial distribution of Modern Service Industry employment and establish Spatial Error Durbin Model(SEDM) to calculate the relationship of value added and employment of finance quantitatively as well as interactions between regions.The main conclusions are as follows: employment of Modern Service Industry is increasing but advantages are not obvious. Modern Service Industry has high industrial consumption on other industries and its influence coefficient is also high, which showed significant capacity to promote employment in other industries. There is a certain spatial clustering in the employment of Modern Service Industry: high values mainly gather in the eastern coastal areas, low values gather in the western region, and the radiation effects of Beijing and Guangdong on the surrounding area is really weak. Financial added value increasing of surrounding area will lead financial employment of the region to increase. Financial employment increasing of surrounding area will lead financial employment of the region to reduce. Education level of Modern service industry’s employee is decentralized which means strong compatibility on labor quality. Based on the above research contents and basic conclusions, this paper proposes several recommendations to promote the coordinated development of Modern Service Industry and its employment.