Study On Employment Growth Effect Of Modern Service Industry In Hubei Province

The development of modern service industry is a critical index to evaluate the level of productivity and market economy,and it is also a crucial source of economic growth.The development of modern service industry is not only essential to change the mode of economic development,but also a prerequisite for building an advanced manufacturing system.It can also promote the amount of employment,and its significance is becoming increasingly prominent.On the basis of the fact that the GDP of Hubei Province ranks seventh in the country in 2018,the social and economic development plan put forward by the government includes such development directions as ‘cultivating and strengthening new economic motive power',‘promoting consumption transformation and upgrading' and ‘vigorously promoting employment and entrepreneurship'.It is the only way to develop the modern service industry under the provincial plan,so it has certain practical significance to study the employment promotion effect of modern service industry in Hubei Province.The concept of ‘modern service industry' was proposed in the work report of our government in 1997,which is a unique concept with Chinese characteristics.Modern service industry is not only characterized by high concentration of human capital,high technology intensity and more added value,but also plays an important role in boosting economic transformation,upgrading and promoting employment.Since 2017,the proportion of the tertiary industry in Hubei province has exceeded that of the secondary industry,and the service industry has become the main part in the industrial structure.The absorption effect of the modern service industry on the labor force has been strongly reflected.Firstly this dissertation sorts out the related follow-up studies and the related research of the employment mechanism,then analyzes the employment increasing mechanism and the performance of the modem service industry.The mechanism can be divided into five categories,which are industry-labor match effect,income multiplier effect,industry affect effect,technical promoting effect and labor supply-demand optimization effect.Then,using the relevant data of Hubei province from 2003 to 2018,this dissertation selected the employment elasticity regression method,the employment elasticity difference method and the industrial structure deviation degree method to conduct an empirical analysis on the relationship between the development of modern service industry and its employment absorption capacity in Hubei province.The results show that there is a positive correlation between the economic growth of modern service industry and the number of employees in Hubei province,but at the same time,the proportion of output value and the amount of employment of modern service industry are relatively low.Modern service industry still have a strong abilityto absorb the labor force in the future.This dissertation theoretically explains the mechanism of modern service industry promoting employment growth and empirically verifies the performance of modern service industry in Hubei province in promoting employment growth in China.Finally,some suggestions on how to realize the coordinated development of modern service industry and employment growth in Hubei province are put forward.