The industrial employment promotion effectiveness of domestic demand in China is studied through job creation index and labor's value-added promotion index which are computed in the framework of international input-output analysis, based on WIOD data. It is found that the job and income promotion effectiveness of manufacturing industries are higher than that of service industries; the employment promotion effectiveness of manufacturing industries is dominantly rising while that of service industries decreases; the employment promotion effectiveness of high skilled labor is higher in service industries, and the incomes of labor in different skill types polarize. Manufacturing is still of great importance to improve employment, because the labor with low-skill is the major component of Chinese labor force right now. However, service industries will get a larger weight in promoting employment with the changed labor endowment, so that the business environment of which should be optimized.