Chinese Employment And Economic Growth During Transformation Period

Since the economic reformation in China, economic growth and employment increase demonstrates no coherence. China's economic growth keeps fast speed while the employment growth rate generally declines. It seems that it has deviated from people's consistent understanding: the economic growth means employment increase, which roots in traditional economic theory. Then what's the kind of relationship between them on earth? Through further study of Neoclassicism theory, Keynes's doctrine and new growth theory, we find that there is no reliable theoretical foundation which demonstrates the coherence existing between economic growth and employment increase. And long-term economic growth does not coherent with employment increase. Through the analysis of the Chinese realistic fact and foreign country's experience, the same view can be drawn. Then we can propose that the economic growth can not be regarded as the abundant condition of solving the employment problem. Meanwhile, this text discussed the relationship between economic growth and employment structure. It concludes that the economic growth is followed by the conversion of the employment structure and the lagging of employment structure changes influents the economic growth. At last, after analyzing the reasons why economic growth has not driven the growth of employment obviously, however, its ability of receiving employer obviously reduces; and the structure changes of the economic growth have not driven the corresponding change in the employment structure effectively, but the disconnection exists obviously. It is necessary for us to realize employment increase coordinating with the economic growth. At present, the government should change its macroeconomic policy from obtaining employment increase by economic growth to that employment increase and economic growth develops in harmony.