The Study On The Impact Of Technical Progress On Employment In China’s Manufacturing

The employment is one of the most important goals of macroeconomic development, also is a major problem for the basic livelihood of the people. Technology as the most active factor in productivity which can’t be ignored, not only promote GDP increase faster, but also Provide more jobs for employments. With the continuous development of science and technology, the knowledge economy has been achieved a great development. In order to improve the technological level, on the one hand, China actively introducing foreign technology, on the other hand through technology research and development by itself. With the improvement of technology level, the GDP get a rapidly increasing. According to the traditional economic theory, between the economic growth and the unemployment rate has an inverse relationship, GDP Growing can lead to unemployment lower, but the unemployment rate does not become better, which cause both the high economic growth and high unemployment rate coexist. For this problem, economists’ researches show that China’s GDP growth caused by high investment, which leads the Capital’s substitution effects for labor. And the GDP growth is not sustainable, which caused a serious shortage of employment.And according to Capital skill complementarity hypothesis, the technology not only has a substitution effects for labor,but also technology can materialize in physical capital,when it accumulated to a certain point, the physical capital can be materialized in physical capital, and then the physical capital will show as technical progress, we called it materialized technical progress. Materialized technical progress can can improve the productivity of enterprises, help enterprises to expand production scale, increasing the demand for labor, reducing the unemployment rate in the community. In addition, it will increase the employment of highly skilled workers, and skill-biased technological progress is emerging. Manufacturing industry is the foundation of our economy, Provide more than half of China’s jobs, and which has an great effects on China’s economic development and social stability.In this paper, we choose China’s manufacturing industrial data as case to analyze the impact of technological advances on aggregate employment and employment structure. In the study, we choose R&D as a measure of technological progress to study the relationship between technological advances in manufacturing industrial and employment. According to the results of descriptive statistics, employment level has the same trend with R&D expenditures, which both showed the first decline and then rise, and we might think there is a positive correlation between the two. In addition, labor and employment rate in the different skill level industry has a clear division, and then it shows that there is the presence of skill-biased technological progress in China’s manufacturing industrial, and high-tech industry employment growth accelerated.And then, we use Im-Pesaran-Shin test, smooth Fisher-PP test, and Fisher-ADF test to the panel data stationary whether or not. Then it use Hausman-test method to select the appropriate model form. Finally, we use GMM model to estimate the relationships between selected variables. The results showed that the density of technical indicators have an significant effects on employment growth, and there is the presence of skill-biased technological progress in China’s manufacturing industrial,. In addition, in order to get a well control of the model stability, we use the R&D expenditure to replace the development density in the GMM model, and the estimation shows the same results. The article study the transmission channels and the effect of policies which affected by employment skill-biased technological progress from the perspective of research and technological progress, it can help us analyze the root cause of the present high unemployment. In order to increase R&D expenditure of enterprise, government needs to increase fiscal enterprises in R&D expenditure. And government first needs to definitude the main areas on which government R&D spending, such as public infrastructure and high-tech industry. Meanwhile, government initiative to guide enterprises to increase research spending, establish a sound financial environment, alleviate the problem of corporate research funding. On the other way, government also needs subsidies to strengthen the enterprise technology research, and establish the appropriate system of property rights, establishment the agencies of "intellectual investment risk fund", paly the greatest effort to establish a fair and equitable environment for R&D activities of the enterprise innovation.The empirical results show that the presence of skill-biased technological progress of China’s manufacturing industry is existence, so it puts forward new requirements for the structure of the labor market, and lead companies increase the demand for high-tech talent employment. Multi-level education is useful to improving the quality of the job seeker, make them get the higher technical skills to adapt to the changing requirements. The government must insist on "education" strategy, increase investment in education funding, train more high-tech talent employment. And technological advances materialized can reduce unemployment, in addition to the reform of the enterprise’s own management system, but also pay need attention to the efficiency of capital, increase the investment in high-tech equipment, and take focus on improving domestic technology, not only introduction of foreign advanced equipment. In addition, the government should adopt positive policies to guide technological transformation of enterprises, improve the efficiency of capital, and the materialization of technology has made significant progress. Thus, the labor productivity of the whole society is increasing, and the employment pressure is eased at present.