Page 106 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.81, # 2, 2024, pp. 104-116

China's statistical office reported that the employment rate for those aged 15 and over
was 4.77% in 2022, with a little increase to 4.83% thereafter.
Investment in education and health, essential for human capital development, has
markedly increased, as indicated by the 2022 statistical bulletin published, which
reported education expenditure amounting to RMB6.132.914 trillion, representing a
5.97% increase from the previous year. In 2022, government expenditure in the health
sector reached a record high of RMB8.5 trillion. In 2020, per capita health expenditure
was 5112.3 yuan, or 7.10% of GDP.

The study offers to investigate the correlation among human capital and its effect on
employment. Although extensive study has been undertaken about human capital and
employment rate, there is a paucity of studies on this particular subject. This study
highlights a research vacuum regarding corporate and employee performance, Micro-
level analysis of the world's second largest economy (Guo, Tang, & Jin, 2021) Human
capital is a vital asset and a crucial element in the manufacturing of goods or the delivery
of services (Pasban & Nojedeh, 2016). The concept of human capital originated in
economic literature, with economist Becker (1996) characterising it as including
knowledge, skills, creativity, and health. He asserts that a person is fundamentally
connected to their capabilities, well-being, and principles. As a result, human capital is
perceived as more sustainable and degradable, according to Schultz (1960).

The Chinese Government is devising an action plan to augment its human resource as
an essential element of its growth strategy by enacting investment policies in education
and investing in both urban and rural human capital to achieve a more equitable strategy
across These domains (Heckman, 2005)In 1986, the Chinese Government implemented
a 9-year compulsory school strategy to enhance human capital and concentration. As a
result, enrolment rates in schools increased across all levels, and The proliferation of
Unoccupied educational establishments in the 1980s served to direct graduates into the
job market as an alternative of higher education (Zhang, Patton, & Kenney, 2013).The
implementation of the liberated and mandatory schooling Act 2006 enhanced China's
investment in human resource development. Consequently, enrolment rates for higher
education rose from 5% in 1977 to 75% in 2016.

Furthermore, enrollment rates for middle and high schools and higher education
surged from 97.5%, 59.8%, and 22% respectively in 2006 to 103.5%, 88.3%, and
45.7% in 2017, attributed to China's reforms and initiatives, wherein China reaffirmed
its public commitment to educational investment through policies such as the
"Strategy for the Revitalization of "Central and Western Higher Education" and the
"Strategy for the Universalisation of Secondary Schooling 2020-2017."

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