Research On How China's Service Industry Participating In Global Value Chains Affects The Country's Job Market

Under the division of labor system of the global value chain,China relies on low-cost labor force to actively participate in the international production division of labor,and bears the labor-intensive production stage,which,to a certain extent,promotes the growth of employment in the country.But at the same time,it also leads to a situation in which China's labor demand structure has fallen into a "low-end lock-in" situation.Therefore,the labor market in China has a situation where“employment difficulties”and“employment shortages”two-day phenomenon coexist.With the service industry playing a more and more critical role in the national economy,what impact does service industries participating in the global value chains have on the domestic employment market?Therefore,based on the world input-output database,this paper analyzes the extent of China's service industries' participation in the global value chain and the changes in China's job market,and conducts empirical research on the impact of China's service industry participation in the global value chain's on the job market.The research indicates:First,compared with manufacturing and mining industries,the degree of participation of China's service industry in the global value chain is still at a relatively low level,but it is significantly higher than that of agriculture.In addition,service industries participate in many upstream activities of the global value chain.This is a significant difference from manufacturing.From 2000 to 2014,China's service industry's participation in relatively upstream activities of GVC has increased,and participation in relatively downstream activities has decreased significantly.Second,at present,China's service industry has become the largest industry to absorb employment,and employment in the service industry accounts for more than 40%of total employment,and the growth rate of employment is also higher than that of the secondary industry;however,although the level of per capita wages in service industry in China has been steadily increasing,it has always been at a lower level and there is a clear gap with the developed countries.In the subdivided industries,employment growth in wholesale and retail is the most significant,and more labor is absorbed there,but per capita wages are at a relatively low level and growth is slow;while employment growth in knowledge-intensive service industries such as finance and scientific research is relatively slow,however,the level of per capita wages has increased rapidly.Thirdly,in terms of employment,the Chinese service industry actively participates in relatively upstream activities in the global value chain,which will reduce the demand for its own labor force.Conversely,actively participating in relatively downstream activities will increase the use of labor,and technological progress will strengthen this kind of influence.This effect is particularly evident for knowledge-intensive service industries.At the level of per capita wages,when China's service industry participates in activities that are relatively upstream in the global value chain,it will significantly increase the per capita wage level of service employees,which is mainly achieved through technological progress;the increase of participation in downstream activities of global value chains also has a growing effect on wages,and the mediating role of technological progress is even more pronounced,especially in the simple cross-border participation in global value chain activities.For different types of service industries,this effect varies.