China's Economic Growth And Employment Relationship Between The Structural Analysis

The relationship between economic growth and employment is the key point of economic study. Economists think that economic growth is the premise of employment enlargement, and according to "Okun's law", there is a positive correlation between economic growth and employment. However, in China's economy reality, the Okun's law lapse, that is, rapid economic growth and high unemployment co-exist. With the opening policy ,our economy create a dramatic miracle ,the average GDP growth exceeded 7%,and China's GDP increased from 3624.1 billion to 182321 billion. However ,compared to the high speed of economic growth, China's employment growth rate was getting slow year by year, and it forms increasing unemployment. From 2002 to 2005, the registered unemployment rate in cities and towns was 4.0%,4.3%,4.2%,4.2%, and because of the different statistic method, the real unemployment rate in cities and towns was significantly higher than the registered unemployment rate .The open unemployment rate (including register unemployment rate and off-staffs ) was exceeded 9%, and it has exceeded the warning line of unemployment(7%).Based on the study of developing country's industrialization, using the econometrics methods ,and from the analysis of employment elasticity coefficient, China's economic growth motive and the absorption of labor force in the industries, the thesis find out the reasons of China's increasing unemployment. It lies in these aspects: (1)The inconsequence of industrial structure.(2)The changing of employment lag than the changing of industrial structure. (3)The transmission system of labor fore was not perfect, demanding structure was out of line with supplying structure. So depending on capital-motivated growth is not an effective way. With the reasonable programming and adjustment, in addition to the reform of huji and education system ,thus the condition of China's increasing unemployment can be solved.