The Study On The Relationship Between China's Employment Structure Fluctuation And Economic Fluctuation

China's "Twelfth Five-Year Plan" clearly stated that the transformation of economic development mode requires economic structure to make a strategic adjustment. As an important part of the economic structure, rational distribution of employment structure is directly related to the pace and stability of China's economic development. Similarly economic fluctuation is the important aspect to affect China's economic development. How to reduce economic fluctuation effect on the economic development is the focus of academic research in China. Based on the in-depth explanation to the research of the employment structure and industrial structure, industrial structure and economic growth by numerous scholars at home and abroad, the relationship between the employment structure and economic fluctuations is preliminarily discussed in this paper.Firstly, the concepts of the employment structure and economic fluctuation are defined and the scope of this study is specified in this article. In the meantime, the paper simply expounds the characteristics of China's employment structure and economic fluctuation in stages and reviews the theory associated with the both. The Moore Index and HP filter method are used to measure China's employment structure and economic fluctuation, the data of which is from China's three industry employment and GDP data between 1952 and 2011. In this foundation, the relationship between China's employment structure and economic fluctuation is empirically analyzed by the impulse response function and variance decomposition methods through building the VAR model. The results show that the change of employment structure is a major cause of economic fluctuation, which has a greater impact on economic fluctuation. Nevertheless, the economic fluctuation has a weaker impact on the employment structure. Based on the results of empirical analysis, the paper puts forward some policy recommendations, which reduce the employment structure's negative impact on the economy by proper redistribution. Consequently, the economic fluctuation can be restrained and national economy will be developed better and more rapidly.