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Viewpoint丨Zhao Zhong: Promote high-quality and full employment through labor market policies

author:National Development Institute

Zhao Zhong

He is a researcher at the National Institute of Development and Strategy, Renmin University of Chinese

Dean and Professor of the College of Labor and Human Resources

Viewpoint丨Zhao Zhong: Promote high-quality and full employment through labor market policies

Employment is the most basic livelihood of the people, and it is related to the vital interests of the people, the healthy development of the economy and society, and the long-term peace and stability of the country. The Party and the state attach great importance to employment and adhere to the implementation of the employment priority strategy; Persist in relying on development to promote employment. At the 14th collective study session of the Political Bureau of the CPC Central Committee, General Secretary Xi Jinping emphasized the need to promote high-quality and full employment and continuously enhance the sense of gain, happiness and security of the majority of workers. To promote high-quality and full employment, it is necessary to deepen the reform of the employment system and mechanism. Give full play to the role and function of labor market policies in promoting high-quality and full employment, and adhere to the combination of expanding employment capacity and improving employment quality.

One

Labor market policy is both economic policy,

It is also a people's livelihood policy

Employment reflects the equilibrium between supply and demand in the labor market. From the perspective of the demand for labor, labor is an important factor of production, and the most fundamental demand for labor comes from the production and operation activities of enterprises to obtain profits through the production of products and services. From the perspective of the supply of labor, the supply side of labor is the laborer, who earns income by paying their time and labor in the labor market, and the income from labor is an important source of livelihood for the family. Obviously, employment is both an economic and a livelihood act, and labor market policy is both an economic policy and a livelihood policy. Whether it is economic policy or people's livelihood policy, the goal of labor market policy is essentially the same, and the ultimate goal of economic development is to improve the people's living standards.

Enterprises and workers, as the demanders and suppliers of labor, sometimes do not necessarily agree on their interests, and there may be contradictions. This tension between the interests of the two sides reflects the position of enterprises and workers to a certain extent, but from a broader and more macro perspective, from the perspective of the long-term economic virtuous cycle, the long-term interests of the two sides are identical. The products and services of an enterprise must be sold in order to complete the entire business and production process, and the laborer is the largest consumer, and the consumption power of the laborer mainly comes from the return of the labor market, and the wage level and wage distribution structure of the labor market directly affect the consumption capacity.

Two

Two key focus areas of labour market policy

To play the role of labor market policies in promoting high-quality and full employment, one is to focus on the endowment of labor, such as how the endowment is transformed into income, and the formation and improvement of labor skills; Second, it is necessary to focus on the price in the labor market, that is, the level of wages and the distribution of wages.

The primary objective of labour market policy is to promote the creation and growth of employment and to increase the opportunities for workers' labour endowments to be converted into income through entry into the production process. At the same time, the skill demand of enterprises and the market for workers is constantly changing, and the endowment of workers cannot be static, and it is necessary to continuously update and iterate with the social and economic development and industrial upgrading and transformation.

Another very important concern of labour market policy is the price of labour, i.e. wages, both in terms of level and distribution. The level of wages depends on the share of labor income in the production process, on the relative returns of the various factors of production and their respective proportions. An important indicator of employment inequality is the wage gap, which is not only the wage gap between different skills and positions, but more importantly, the gap caused by the market segmentation caused by the segmentation, discrimination, monopoly and so on of the labor market. An important function of labour market policy is to establish a fair, uniform and regulated labour market.

Three

Expand employment capacity through institutional and policy supply

and improving the quality of employment

Technological progress is profoundly affecting the labor market, the demand for workers' skills has changed significantly, the organization of capital and labor into the production process is constantly innovating, and new forms of employment are increasingly becoming the main force of job creation. At the same time, a very important feature of technological progress is non-neutral technological progress, which is biased towards skills and jobs, and has different impacts on different groups of people, different enterprises, different industries and different regions. The platform economy has become an important symbol of technological progress and an important representative of the new economic form.

The platform economy has created opportunities and impacts on the labor market, bringing opportunities and challenges to employment. The opportunity is to greatly increase the opportunity for the transformation of the labor force's endowment into income, and expand the breadth and depth of the labor force into the production process; The challenges are challenges to jobs and existing social security and labor relations, to the weakening of the bargaining power of labor in the production process, and to the enterprise-centric on-the-job training system.

In view of the opportunities and challenges brought about by technological progress, labor market policies should amplify the employment function of technological progress and use the development of new forms of employment to expand employment capacity. We will improve the quality of employment by providing systems and policies, further reforming the social security system, and improving labor protection for flexible employment groups. In view of the trend of decentralization and virtualization of the production process brought about by the new economy and new forms of employment, we should reform and improve the skills training policy system, and build a socialized and market-oriented on-the-job training and lifelong learning system.

As a new element organization, the platform provides a lot of products and services, provides a platform similar to the labor market, and plays the function of the labor market to a certain extent. The implementation and implementation of labor market policies are inseparable from the platform, and the exchange impact of the platform's own environmental, social and corporate governance (ESG) and labor market policy is important. In practice, it is necessary to further guide and guide platform companies to include high-quality and full employment in their ESG, promote the synergy between labor market policies and corporate ESG, and better integrate the national labor market policy with the social responsibility of platform enterprises.

Article source: "China Organization and Personnel News"

WeChat editor: Zhang Jingjing

Viewpoint丨Zhao Zhong: Promote high-quality and full employment through labor market policies

The National Development Institute of the People's Republic of China is a new type of university think tank with Chinese characteristics that the Chinese University focuses on building with the efforts of the whole university, and the current chairman is Zhang Donggang, secretary of the party committee of the university, and the current president is Lin Shangli, the current president. In 2015, it was selected as one of the first batch of pilot units for the construction of "National High-end Think Tanks" in China, and was selected as one of the top 100 think tanks in the world, and ranked first in the "Top 100 Think Tanks of Chinese Universities" in early 2018. In 2019, it was selected as the first echelon in the comprehensive evaluation of national high-end think tanks, and was the only university think tank selected for the first echelon.

The National Development Institute of the People's Republic of China is actively building a high-end think tank platform with "new platform, large network, interdisdisciplinary, cross-cutting, promoting innovation and high output". Focusing on the four major research fields of economic governance and economic development, political governance and rule of law construction, social governance and social innovation, public diplomacy and international relations, it has gathered high-quality resources of first-class disciplines in the university, and has achieved remarkable results in infrastructure construction, decision-making consultation, public diplomacy, theoretical innovation, public opinion guidance and internal governance. With the goal of becoming a "leader of a new type of university think tank with Chinese characteristics", the National Development Institute is rooted in the land of China, adheres to the national strategy, adheres to the mission of the times, and is committed to building a world-class university think tank with global influence.