AN EMPIRICAL STUDY ON THE RESTRUCTURING OF LOCAL ECONOMY UNDER THE CHANGING INDUSRIAL STRUCTURE OF NATIONAL ECONOMY

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After the collapse of the overheated economic activities at the beginning of the 1990 s, the employment structure and employment conditions in Gunnai district have been changing. The labor force discharged by large companies under their restructuring sch- emes has mostly been employed as low-waged part-time work force by small- and medium- sized firms of machine industry, civil engineering and construction industry, and service and retail industries. Small and intermediate sized businesses of machine industry have not cut their employment in large scale and tried to survive by means of curtailment of operation and development of new technology. Civil engineering and construction industry have tried to tide over the reduction of public works by making efficient use of temporary labor force. Service and retail businesses seem to replace full-time workers by part-time workers. Textile businesses have shifted to new businesses which require high level of R&D and created new jobs for young kers. The employment of new high-school graduates who had played an important role in the Gunnai labor market has been reducing because of decreasing number of children and rising ratio of students who wish higher education.In order to maintain and develop local economies the following are indispensable: to create and maintain the diversity of industries and businesses in terms of size, to encourage new businesses of high-technology, to construct the network of information on technology and market demand among local businesses, and to provide desirable living conditions and public infrastructure which enable people to make a U-turn to their home town and bear and raise their next generation.