Study On The Impact Of RMB Exchange Rate Changes On Employment In China

Exchange rate is an important financial policy tool in the national economy,Reflects the purchasing power of one country's currency relative to another,it not only reflects the economic strength of a country,but also affects a country's foreign trade and even employment situation.Since July 21,2005,China began to implement the managed floating exchange rate system which basis of market supply and demand and references to a basket of currencies,the RMB exchange rate keep steady appreciation in long term.But since 2015,the financial markets had been more volatile,RMB against the U.S.dollar exchange rate fluctuations,showing a downward trend.In October 1,2016,the RMB officially joined the International Monetary Fund(SDR),This was a major achievement in promoting the internationalization of the RMB,indicating that the status of the RMB in the international financial market rised.At present,China's economic growth rate from the original rapid growth into the normal stage of development,The economy is facing greater downward pressure.As the basis of people's livelihood,employment is related to the stability of the country and society,China's new employment population increased year by year,Under the downward pressure on the economy,the employment situation is more severe.Therefore,in the new economic situation,it is of great practical significance to study the impact of the RMB exchange rate on China's employment and solve the difficult problem of the current employment situation.This paper studies the impact of RMB exchange rate changes on China's employment through theoretical and empirical analysis.In theory,the paper first reviews the relevant theoretical basis of the exchange rate and employment,and introduces the current situation of China's exchange rate and employment,and then analyzes the transmission path of China's exchange rate,that is,the RMB exchange rate will have an impact on employment through the transmission path of export trade,the transmission path of foreign direct investment and the path of resource allocation.In the empirical analysis,we use the data of 31 provinces(cities,districts)in2001-2015 as the research object to Build panel model,Firstly,we analyzes the impact of RMB exchange rate fluctuation on China's employment from the national level,It is found that the change of RMB exchange rate will lead to reverse changes in employment;Secondly,through the regional level to explore the impact anddifferencesof the RMB real exchange rate changes on employment of east-cenrral-west regions;finally,we explore the impact of and the differences between different industries.The results show that there are large differences among east-cenrral-west regions:The change of RMB exchange rate has a significant negative impact on employment in the eastern and central regions,but has no significant effect on employment in the western region.From the trade point of view,The impact of RMB real exchange rate on the employment of the transportation industry as well as the accommodation and catering industry is not significant,Appreciation of exchange rate will stimulate employment growth in the financial sector,But Reduce employment population in Farming indusry,Manufacturing industry,Construction industry,Wholesale and retail industry.