The creation of more jobs for China's massive labor force is the foremost economic development objective for the Chinese government. This paper analyzes the relations between economic growth and employment growth, between capital growth and employment growth, and between wage growth and employment growth in China. The solution to China's unemployment problem requires not only changes in China's macroeconomic and employment policies, but also a change in the priorities of the country's economic growth model from output growth toward employment growth. Moreover, it will be necessary to handle correctly the relations between labor-intensive industries and capital-intensive industries, balance the interests of laborers and the interests of capital, and support the expansion of domestic demand and the creation of employment opportunities.

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