Abstract: With the gradual decline of total industrial employment, exploring the determinants and impacts of industrial employment distribution and employment efficiency is of great practical significance for promoting and stabilizing industrial employment. In the paper, the appropriate forms of factor demand model were tested and an elastic analysis of various influencing factors of industrial factor demand of labour was conducted. The empirical results show that output expansion and new investment are essential to maintaining the stability of industrial employment. The overall industrial employment status is not so highly efficient, and employment efficiency varies significantly among industries. Therefore, in face of an uncertain economic fluctuation, structural unemployment problems may arise.