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��Home>>China Observer
China faces a task to improve skills of labor force
www.chinanews.cn 2007-06-26 18:18:01
Chinanews, Beijing, June 26 �C In order to further boost economic
development, China should change more of its labor population into
knowledge-intensive laborers. China should continue to improve its labor
structure and let skills contribute more to its GDP growth.
The statement was made by Chen Dongqi, deputy director of the
Macroeconomic Research Institute under the State Development and Reform
Commission when he attended the China Economy Growth and Economic Cycle
Forum (2007) held in Beijing on Monday.
Right now, Chinese economic development has entered its third booming
period since China kicked off the Opening-up Policy. During the third
period, economic growth has manifested three features: fast, steady and
sustainable. The fast economic growth was attributable to the fundamental
change taken place in Chinese labor structure.
The third period of economic growth started in 2001when China joined the
World Trade Organization. The booming period may last for ten years.
Economic growth displayed three features during this round of economic
growth. First, economy developed at a fast speed. Second, economic
performance was steady. Third, economic boom lasted for a long time. The
recent round of economic growth was achieved when China already managed
an average economic growth rate of 9.7% for 24 years. The new round of
economic boom was driven first by domestic demand and later by external
demand. When there was more demand, inflation did not occur. The reason
lay in the fact that as supply grew, consumption and investment also
increased. The supply growth was prompted by structural changes taken
place in labor population.
When domestic demand rose quickly, the national output ratio also rose.
Such rise was prompted by a freer economy, which boosted market
operational efficiency and helped improve economic structure. Apart from
these external factors, there is a structural change taking place in
labor force. Out-of-date labor decreased and was replaced with more
knowledge-intensive labor force.
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