Page 91 - IJPS-10-2

International Journal of
Population Studies Employment-driving effect

higher the unemployment rate, the weaker the current of enterprises with limited fault tolerance, an increase
ability of China’s manufacturing enterprises to absorb in employee wage levels naturally leads to a reduction
employment. In recent years, the contribution of producer in staff size. Second, with an expanding staff size and no
services to GDP has shown a significant upward trend, significant increase in corporate assets, the benefits that
and its role in absorbing employment is strengthening. employees can enjoy within the enterprise may diminish,
In conjunction with the growing trend of industrial affecting the employment-driven ability to improve. In the
services, when manufacturing “squeezes out” part of the process of transitioning toward a market-oriented society,
labor force, resulting in a higher unemployment rate, manufacturing enterprises serve as the cornerstone of
producer services demonstrate a more robust ability a country’s development, with the industry playing an
to drive employment. Employee welfare and employee important role in supporting the country’s steady progress.
safety training show no significant effect on the one-way Given the extended history of industrial development,
employment of manufacturing enterprises by producer government support for manufacturing enterprises has
services enterprises. accumulated and surpassed the “inflection point” for
promoting employment. Clearly, the government should
3.2.2. Analysis of the results of the estimation of the be more inclined to support the producer services, while
equation of producer services manufacturing enterprises themselves should focus on the
The results indicate that for every increase of 1 person in improvement of “quality,” fostering a corporate culture for
manufacturing employment, employment in producer employees and cultivating their own soft power.
services increases by 0.3306. The regression results show that In the preceding analysis, a particularly noteworthy
the promotional effect of manufacturing on employment phenomenon is the greater employment-driving effect for
in producer services in A-share listed companies is smaller producer services on manufacturing compared to that of
than the promotional effect of producer services on manufacturing on producer services. This constitutes one
employment in manufacturing. This coincides with the of the core conclusions of this paper, warranting further
current trend of servitization of manufacturing in China, exploration.
which is conducive to manufacturing enterprises gaining
competitive advantage and efficiency advantages, thereby Specifically, the following theories can be combined to
improving their employment-driving ability. analyze:
(i) Industry association theory: With the deepening of
Regarding control variables, the nature of enterprise international division of labor and specialization,
equity shows no significant effect on the employment producer services have become distinct from
drive of producer services enterprises, consistent with manufacturing. Serving as an intermediate input for
both manufacturing enterprises and producer services manufacturing, producer services initially rely on
enterprises. It is noteworthy that employee welfare and knowledge-intensive and innovative manufacturing
R&D innovation play a positive role in the employment enterprises. As industrialization progresses and
drive of manufacturing, influencing producer services. This producer services themselves develop and grow, the
differs from the employment drive of producer services on industrial linkage strengthens. The scale of producer
manufacturing. With the growing trend of service-oriented services expands, becoming an important part of the
manufacturing, especially where R&D innovation plays national economy. Benefitting from economies of
an important role, a higher level of employee welfare and scale, producer services become suppliers for various
technological innovation strengthens their employment manufacturing subsectors, with other industries
drive on producer services. At the same time, it also shows increasingly dependent on their resources. Producer
that, at present, producer services enterprises in China’s services take a leading and supporting role, providing
A-share listed companies are mainly characterized by a specialized services for manufacturing and engaging in
soft culture. The inclusiveness of enterprises and the soft R&D, procurement, and marketing for manufacturing
skills of employees play an important reference role in the enterprises, naturally leading to a significant increase
expansion of the employment scale of enterprises. in the number of employees in each link.

Another point of concern is that the employee wage (ii) Outsourcing theory and comparative advantage
level exhibits a suppressive effect in both manufacturing theory: Manufacturing enterprises outsource non-
enterprises and producer services enterprises, being core business to producer services enterprises for
statistically significant at least at the 5% statistical level. This profit maximization, thereby increasing the demand
can be attributed to two main reasons. First, enterprises for producer services. For manufacturing enterprises,
allocate a certain budget for recruitment, and in the case technological innovation is one of the important

Volume 10 Issue 2 (2024) 85 https://doi.org/10.36922/ijps.0316