Page 93 - IJPS-10-2

International Journal of
Population Studies Employment-driving effect

Table 7. The employment‑driving effect of manufacturing manufacturing on producer services is not significant.
subdivision types on producer services In contrast, the employment-driving effect of non-high-
tech manufacturing on producer services is statistically
Variable Number of
producer services significant at the 1% level. This disparity can be attributed
employees to findings from the “2022 Report on the Demand and
Number of high-tech manufacturing employees 0.0997 (0.63) Development Environment of High-tech Manufacturing
Number of non-high-tech 0.6297*** (2.36) Talents” released by China’s major recruitment websites.
manufacturing employees The report indicates a remarkable 28.2% job growth rate
Control variables Yes in high-tech manufacturing during the first 4 months of
2022, far exceeding the industry average of 8.4%. This surge
Province Yes reflects a substantial demand for high-tech talents rather
_cons 89934.77** (2.51) than through producer services. The strengthening of
Observations 439 manufacturing servitization predominantly demonstrates
R-squared 0.7077 a fusion of non-high-skilled services industries and new
Notes: *p<0.1, **p<0.05, ***p<0.01. industries, thereby developing into a new growth point
to drive economic growth. In addition, it demonstrates
density. The high-tech service system, concentrated in positive promotion for producer services.
knowledge and high in added value, supports and propels 4. Concluding remarks
the development of the economy, industry, and enterprises.
It yields significant technology multiplication and scale Utilizing data from the CNRDS database of A-share listed
effects, holding significant importance for expanding companies spanning 2012 to 2020, this paper delves into
employment, cultivating new economic growth points, the two-way employment-driving effect of manufacturing
and optimizing industrial structure. and producer services. The results reveal: (i) the two-
way employment-driving effect of manufacturing and
Research studies in the U.S. reveal that for every additional
high-skilled job in the city, five consumer service jobs are producer services is significantly positive, with producer
services exhibiting a stronger effect on manufacturing
created, including both skilled occupations (e.g., lawyers, enterprises, aligning with the findings of Li et al. (2017).
teachers, and nurses) and unskilled occupations (e.g., service (ii) Different subdivisions of producer services and
industry, hairdressers, and carpenters). For example, Apple, manufacturing manifest distinct driving effects on their
a representative high-tech company with a world-class R&D two-way employment. Both high-tech producer services
team, employs 12,000 people in the Cupertino area and and non-high-tech producer services exert a significant
creates over 60,000 additional local service jobs, including, positive promotion effect on manufacturing, with high-
among others, 36,000 unskilled jobs and 24,000 skilled jobs. tech producer services displaying a more prominent effect,
This illustrates the more significant employment-driving approximately 2.85 times that of non-high-tech producer
effect of high-tech services on manufacturing (Moretti, services, indicating a clear scale technology effect.
2012). Therefore, vigorously developing high-tech producer However, high-tech manufacturing shows no significant
services remains the future direction. driving effect on the employment of producer services,
3.5. Heterogeneity of manufacturing whereas non-high-tech manufacturing exerts a significant
driving effect on employment in producer services at the
Considering the data availability and the classification 1% statistical level.
of high-tech manufacturing by the National Bureau
In most developed countries, the services industry is
of Statistics, manufacturing is divided into high-tech the primary source of new jobs. The results of this study
manufacturing and non-high-tech manufacturing. indicate that producer services exert a stronger driving
High-tech manufacturing includes pharmaceutical effect on manufacturing employment. The government
manufacturing, aerospace manufacturing, chemical
products manufacturing, computer manufacturing, should enhance its support for producer services
general equipment manufacturing, electrical machinery enterprises and expand the employment opportunities
within this sector, with particular attention to fostering
manufacturing, and instrument manufacturing, while synergies between producer services and emerging
the remaining manufacturing falls under non-high-tech strategic industries such as the internet. At present, many
manufacturing.
of China’s manufacturing industries are labor-intensive,
From the regression results as shown in Table7, it is and the “re-industrialization” of manufacturing industries
evident that the employment-driving effect of high-tech has achieved little success. While China has achieved

Volume 10 Issue 2 (2024) 87 https://doi.org/10.36922/ijps.0316