【摘要】This paper evaluates the employment effects of foreign direct investment(FDI) in China. The direct and indirect employment effects of FDI are analyzed in economic model. An empirical study is carried out based on annual data of China in 1983～2002. The results indicate FDI on one side creates new jobs directly and on the other side reduces employment indirectly through crowding out domestic investment and raising productivity. The final effect can be expressed that 1% growth of FDI would increase the actual employment rate by 0 .008%.