Abstract: Employment is an important issue related to people′s livelihood. It is of great practical significance to deeply understand the role of agglomeration economy in promoting employment.On the basis of constructing a dynamic growth model of employment, which includes specialized agglomeration and diversified agglomeration, this paper uses the data of Chinese industrial enterprises and regional input-output data to test the impact of two types of agglomeration economy on urban manufacturing employment, and explains the difference between them.The results show that the intra industry spillover effect of specialization agglomeration restrains the employment growth of urban manufacturing industry, and the inter industry spillover effect of diversification agglomeration has a significant positive effect, while the industrial correlation effect is the main mechanism;the intra industry spillover effect has a negative impact on the employment growth of different industries and regions, while the inter industry spillover effect has a heterogeneous impact due to the differences in market environment, technology level and industrial chain of different industries and regions;at the micro level, compared with specialized agglomeration, the employment growth effect of diversified agglomeration is mainly realized by promoting the establishment of enterprises and expanding the scale of small and medium-sized enterprises.

Key words: agglomeration economy, industry spillover, employment growth