Impacts of capital deepening on employment and the reasons behind

This paper first uses economic growth theory to analyze the relationships between capital deepening and economic growth and employment,and,through an examination of China's related figures,draws a conclusion that capital deepening exists in China's economy.On the basis of this,this paper investigates the negative effects of capital deepening on employment.China's economic growth is mainly driven by capital.With capital being concentrated on capital-incentive industries,employment absorption ability of capital declines.The capital deepening of China is related with the development period(industrialization is speeding up),and is also attributed to the resource allocation mechanism.Distortion in price of production factors is an important reason as well.