| With the changes in the pattern of economic growth an adjustment of industrial structure, structural unemployment becomes serious. In recent years, the global financial crisis has an enormous strike on labor-intensive enterprises, and therefore employment attracts more eye balls. The economic globalization enables us to make use of both the domestic resources and international resources to alleviate unemployment trouble. Foreign Direct Investment promotes our economic development. What's more contributes to our employment.The essay introduces the concept of service industry and FDI and related theories and literature. Then it reviews the history of the service industry bringing in FDI. At the same time, employment situation in the service industry is stated. It focuses on analyzing effects of FDI in services industry on employment quantity and employment quality from both theoretical and empirical perspective. It theoretically analyzed the effect of FDI on employment quantity from angles of direct employment effect and indirect employment effect .Then it brings in Douglas production function and makes empirical analysis. Result comes out that FDI in services industry has a minor negative effect on employment quantity. After theoretical analysis of employment quality effect, from respective of workers skills and enterprise human capital system, the essay undertakes empirical analysis with Co-integration and Error Correction Model. It turns out that FDI significantly promotes labor productivity. Based on the above analysis, countermeasures on how to increase employment quantity and improve employment quality are made out, including improving the investment environment to bring in FDI positively and effectively; guiding the regional flow of FDI to create more job opportunities; optimizing the investment structure to promote the upgrading of the employment structure; developing human resource to provide an effective labor supply for foreign enterprises. |
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