Analysis of China’s Employment in Cities and Towns

Abstract

Since the reform in transitional economies, the status of labor market in China has changed a lot, and unemployment problem is becoming increasingly acute in cities and towns. By calculating the labor force participation rate and analyzing the migration of rural labor into cities and towns, this paper studies the unemployment problem in cities and towns from the aspect of labor supply.
From the aspect of labor demand, regression analysis is made to reveal the affecting relations between employment and economic growth. Based on the above analysis, this paper reveals reasons for china’s employment problem in cities and towns and gives some policy advices, such as deepening reform in the state-owned enterprises and the adjustment of economy structure to keep a certain economic increasing rate, enforcing the macro-control of the employment, developing enterprises with medium or small sizes and the tertiary industry, and setting up service system in labor market to promote employment.