The Impact Of The Development Of China's Producer Service Sector On Job Creation

As China's economy is growing rapidly,the producer service sector has shown a clear trend of developing,which creates a virtuous circle that further advances China's economic development.Additionally,this development of the producer service sector can stimulate job growth.The producer service sector is an important part of the service sector and provides directly or indirectly products or services in the manufacture sector that are heavily dependent on human and intellectual capital.The producer service sector is highly correlated to the other industries,which allows opportunities for coordination between the producer service sector and other industries during the development phase of these industries.Outcomes of proper coordination can be an effective booster for China's overall economic development,as well as generating employment opportunities.The rapid development in the producer service sector in western countries has been a driving force for increasing employment opportunities that are effective in solving employment issues.By contrast,the producer service sector in China was not developed until recently,resulting in a relatively weaker capability in stimulating job creation.Insufficient amount of scholarly research studying the impacts of the producer service sector has been conducted.Therefore,it is necessary to study the producer service sector in order to find an effective approach to solve China's current employment issues.This article starts by defining the producer service sector in the context of the Chinese economy and providing a categorization of the producer service sector.Then it analyzes the impacts of producer service sector on job creation from the perspectives of the proportions of employment and employment growth rate.The result of the analysis makes it clear that the producer service sector was formed relatively late in China.Its size of the industry is also relatively small in comparison to western countries.Although the employment proportion in this industry has increased exponentially,it is still far behind the rates in most western countries.Additionally,the employment rate and the proportion of employment in the producer service sector has been lagging behind the growth rate of its gross domestic product in this industry,which demonstrates that the expected positive influences on employment has not been fully achieved.Then this paper analyzes two theoretical approaches to fulfill job creations through the development of the producer service sector as well as the mechanisms embedded in this theoretical prediction.One approach is the direct employment effects,namely the development of producer service sector employment growth that generates a stimulating force towards job creation.The other approach is the indirection employment effects,which are created due to the interconnected nature of the producer service sector with other sectors.The interactions between the producer service sector and other sectors are able to complement each other,promoting the overall development of China's macro-economy.Such cross-sectorial engagement with the economy creates a reinforcing loop that would further create employment opportunities.By leveraging on the elasticity of employment,output multipliers,and industry structure deviation in China,producer service sector will have a strong capability of absorbing direct and indirect employment effects significantly,indicating a huge potential on employment growth through the development of its producer service sector.Based upon what has been discussed regarding the current issues during the development of China's producer service sector as well as the root causes of these issues,several recommendations for public policies that can be taken to solve employ issues are provided for consideration.They include liberalizing the market,and promoting a sustainable development of producer service sector,improving quality of high-level personnel training,fulfilling the needs of the producer service sector for high-level personnel,deciding a technological development path that giving play to the stimulation of job growth through technological advances,accelerating the development of the producer service sector itself,strengthening the coordination and development between producer service sector and the manufacturing industry,promoting the overall growth rate of employment.