Change Of Labor Costs In Anhui Province And Its Impact Study

Labor costs change is directly related to the macro economic operation and the livelihood of the people question, labor costs change orientation is not only a problem on the level of enterprise management, more reflect the concept of national and regional economic development and structural adjustment strategy orientation. Eastern labor cost pressures have begun to shift to inland, as central important labor resources in Anhui province, rising labor costs are also inevitable. By analyzing current situation of labor costs change in Anhui province found that labor remuneration is still a major part of labor cost; The proportion of the social insurance premium of enterprises’education and training on the low side. From the point of the degree of change, as the main body of the direct labor costs and with worker pay for social insurance as the main body of the indirect costs are growing faster; The weight of unit labour costs and labor factor in primary distribution is falling; Migrant wages level have greatly increased, the labor cost in domestic enterprises in Anhui province is still low; Enterprise upward pressure on labour costs is bigger than raw material pressure. Then from the quality of workers improve, supply and demand change in the labor market, the government’s macro regulation and the cost of living increase state the reason for the rising labor costs in Anhui province. Rising labor costs are studied on regional employment, the effects of industrial structure and economic growth. Through the empirical analysis of the labor cost on employment and the employment structure, draw the conclusion that there is a long-term stable equilibrium relationship between labor costs and employment. In the long run, the rising cost of labour plays a positive role to promote the growth of employment in this region. With the labor costs increasing employment opportunities, the province’s employment structure has been optimized. By establishing the econometric models of quantitative analysis of the changes in labor costs for three industrial structure effect, it is concluded that with rising labor costs, the proportion of primary industry output value decreases, the proportion of second and third industry output value increases. But the degree to which the role of the first industry labor costs than the second and third industry. Joined the labour cost factors of input-output model to measure labor cost impact on output, the Anhui province labor costs to boost output less capital investment role in promoting. Finally, on the basis of the above put forward the policy suggestions to cope with rising labor costs.