A Analysis On The Impact Of The Industrial Transformation And Upgrading Of Guangdong Province On The Labor Demand

Since the reform and opening-up policy, the development of economy in Guangdong Province has been pretty fast and remarkable achievements have been made. Having made great progress both in economic aggregate and in economic structure, currently Guangdong Province is at the critical period of transformation and upgrading and standing at the crossroads of historical change, so we must realize the significance of industrial transformation and upgrading, and make full estimates and accurate judgements of the consequences that it could bring about. Only if we know accurately the consequences, can we find breakthrough points that are more effective, paths that are more reasonable, and guidance that are more powerful for industrial transformation and upgrading. “Steadying growth, promoting reform, adjusting structure, benefiting people?s livelihood”, the starting points and the ultimate objectives of all economic measures should be the tangible improvement of people?s livelihood and the development, harmony and stability of the society, wherein the primary point is to ensure the labor force to full employment, because only by full employment can more working people earn their own happiness by their own hands; on the contrary, an increasing number of the unemployed often casts adverse impact on social stability. It is of great guiding significance to Guangdong Province?s industrial transformation and upgrading that the impact of industrial transformation and upgrading of the demand for labor is accurately assessed, and in particular, reasonable inquiries of such opinion proposed by some scholars that “industrial transformation and upgrading results in both ?job creation? and ?employment destruction?” are made.Firstly, this thesis makes definitions of the two important concepts, namely industrial transformation and upgrading and labor demand through document research, and summarizes relevant theories. And then on this basis, this thesis makes a comprehensive review of the conditionds of the industrial transformation and upgrading and labor demand since the reform and opening-up policy, and analyses what influences have been exerted on labor demand by the industrial transformation and upgrading. In the beginning, this thesis makes a descriptive analysis from three angles. The first one is making an estimate of the speed and direction of the industrial transformation and upgrading, the second one is making an analysis of the coordination of Guangdong Province?s industrial structure and employment structure, and the last one is comparing the employment contribution of Guangdong Province?s three industries. Under the guidance of the descriptive analysis, this thesis then establishes an econometric analysis model to make a quantitative investigation of the direction and intensity of the impact on labor demand by the industrial transformation and upgrading. The study finds that the demand for labor in Guangdong Province is indeed closely related to the industrial transformation and upgrading, different forms of industrial transformation and upgrading affect labor demand differently, and such industrial transformation and upgrading that is featured by capital deepening and technical extension does have the effect of reducing the demand for labor. With regard to this conclusion, this thesis makes some suggestions: during the process of industrial transformation and upgrading, we should actively develop the tertiary industry, or the modern service sector, and in the same time, we cannot abandon labor-intensive enterprises in the secondary industry. We should socus on promoting industrial restructuring within the secondary industry upgrading, and ensure the healthy development of labor-intensive secondary industries. In addition, we must strive to enhance the quality of labor force, so as to keep up with the pace of industrial transformation and upgrading and reduce structural unemployment.