Since the economic reform and opening-up policies were launched, a largenumber of foreign direct investment(FDI) has flown into China. China hasexperienced high economic growth, however, employment pressure is risingas a result of relatively low growth of employment. Previous researches showthat FDI could create employment opportunities in the host country. In orderto accelerate the growth of employment, it is necessary to consider theemployment effect of FDI in China.This study empirically analyzed the effect of FDI on China’s employmentduring the 10year period between 2002 and 2011. Considering the period ofcoastal cities and inland cities introduced the FDI and the feature of coastalcities(capital intensive industry FDI more than labor intensive industry FDI)and inland cities(labor intensive industry FDI more than capital intensiveindustry FDI), we analyzed the result by the regional of the coastal cities andthe inland cities. In general, the capital intensive industry FDI will bring55decrease of employment in the countries or region; on the contrary the laborintensive industry FDI will bring increase of employment in the countries orregion. But result of this paper shows that there is no there is no differencebetween the capital intensive industry FDI and the labor intensive industryFDI. They are all brought increase of employment. In addition the capitalintensive industry FDI created more employment.