Study On The Employment Effect Upon The Three Industries Of China’s Undertaking International Service Outsourcing

Since the 1990 s, with the development of the information technology and globalization, outsourcing strategies have been adopted by more and more enterprises which enable them to better focus on their core advantages and lower operating costs. Service outsourcing is rising around the world.As a new business model, the popular of international service outsourcing puts forward many new research issues. China has already become the world’s second largest services undertaking country after years of development, but faces the growing employment pressure as well. Finding out the relationships that the international services outsourcing whether have an important impact on China’s labor market will benefit to solving employment problem.This paper begins with the background of topic and defining the exterior of employment effects of this research, and then reviews related literatures at home and abroad on the subject of the relationships between international outsourcing and employment. Then this paper introduces some theories about international outsourcing affecting the demand for labor, and analyses the channels of affecting employment. After that, this paper selects relevant variables of time series data of China from 1997 to 2012 to further empirical analysis. The empirical results indicate that undertaking international services outsourcing is helpful for employment growth of both the second industry and the tertiary industry, but has negative implications on the first industry’s employment. Finally, some recommended measures and policy advices are put forward to promote the development of international service outsourcing and expand employment amount for our country.