With the rapid development of the Internet and information technology, the deep integration of manufacturing and service industries has become the mainstream trend of industrial development. The old view was that manufacturing had a one-way multiplier effect on service employment. This view ignores the inverse effect of service employment on manufacturing employment. In the context of the current deep integration of manufacturing and service industries, if we continue to observe the employment problem under the traditional “dichotomy” framework of manufacturing and service industries, and emphasize the one-way role of DS200SDCCG1AFD manufacturing on service industries to drive employment, it will be difficult to form a stable and lasting job creation. We should make use of the two-way interaction between the two types of employment to fully release the employment potential.

1. The two-way relationship between manufacturing employment and service employment

According to the previous understanding, the manufacturing industry is the premise and basis of the development of the service industry, and the service demand caused by the expansion of the manufacturing industry has further promoted the economic growth. Following this logic, many studies have confirmed the employment multiplier effect of manufacturing on services. For example, research has shown that every new job created in the manufacturing sector in the United States can drive 1.6 new jobs in the service sector, and the corresponding employment multiplier of the high-tech manufacturing sector is as high as 2.5, and the low-tech manufacturing sector is 1. DS200SDCCG1AFD Research on China’s labor allocation in manufacturing and service industry also shows that the expansion of manufacturing industry has brought about an increase in service demand, which in turn has a job creation effect on the service industry. From 1990 to 2005, every new manufacturing job created in China was able to create 0.41 to 0.59 service jobs. This view also holds that the development of the service sector will prompt more labor to flow to the service sector, competing with the manufacturing industry for limited labor resources. In particular, the growing growth and transformation and upgrading of the service industry have brought higher demand for labor skills. A considerable number of skilled labor prefer to enter the service sector because of the flexible and free life and superior and stable office environment, which makes the service industry compete with the manufacturing industry in the labor market, leading to the phenomenon of involuntary shortage of skilled labor in the manufacturing industry. Thus restricting the technological innovation and industrial upgrading of the manufacturing industry.

In the discussion about how to increase employment, people often overlook an important fact: there is a linkage between industries, there is a two-way feedback between sectors, especially the service industry employment also has a multiplier effect on manufacturing employment. In fact, the growth of the service sector is also conducive to the growth of manufacturing employment. At present, the driving effect of manufacturing employment on service employment in China is gradually decreasing, at the same time, the service industry is showing great potential to pull manufacturing employment in reverse.

On the one hand, the latest research on the employment interaction between China’s manufacturing industry and service industry shows that the comprehensive employment coefficient of manufacturing industry and DS200SDCCG1AFD its subcategories has gradually decreased since 2002, which is consistent with the trend of gradual decline of the comprehensive employment coefficient in the process of industrialization of various countries, indicating that with the improvement of labor productivity, Manufacturing is becoming less of an employment driver for services. At present, China’s manufacturing industry mainly drives the employment of low-end service industries such as wholesale, retail, transportation, warehousing, real estate and construction, and has little driving effect on the employment of high-end service industries such as information transmission, computer services, software, scientific research and technical services. Moreover, the driving effect of manufacturing on service industry employment mainly comes from the middle and high-end manufacturing sector, and the employment crowding out effect of service industry on manufacturing industry is mainly in the low-end manufacturing sector.

On the other hand, from the perspective of the employment drive of the service industry to the manufacturing industry, because the low-end manufacturing industry is more sensitive to the change of labor cost, its employment drive effect on the service industry is mainly manifested DS200SDCCG1AFD as a one-way promotion effect on the employment of bioactive and producer services. There is a significant two-way addition effect between employment in medium and high-end or high-tech manufacturing industry and employment in different types of service industries. The research on the interaction multiplier between manufacturing employment and service employment in China shows that there is a two-way promotion effect between the two. Every 1% increase in manufacturing employment will bring about a 0.45% increase in service employment, and the producer service industry benefits the most. A 1 percent increase in services employment leads to a 1.15 percent increase in manufacturing employment. Moreover, as time goes by, the multiplier effect of service industry employment on manufacturing industry employment will dominate, and the development of manufacturing industry increasingly depends on the continuous growth of service industry. The research on the employment of producer services in the Yangtze River Economic Belt also shows that the employment of producer services and manufacturing employment have a significant two-way promotion effect, and the multiplier effect of producer services employment is greater, and the driving role of manufacturing employment is more obvious.