Abstract: Under the background of China's reform of the supply front and industrial restructuring, how to rationalize the relations among employment，consumption and investment is the basis and key issue of steady economic development . We make a reasonable choice for the exogenous that related to China’s current consumption, investment and employment through stepwise regression analysis method, and based on the VARDL model, we study the dynamic relationship of consumption, investment and employment. Three-stage least squares estimation results show that the rate of investment in fixed assets increases 1 unit, and the employment rate will increase 0.064 units. Current consumption rate increases 1 unit, and the employment rate will decrease 0.247 units, but the negative impact of consumption on the employment rate is temporary. And the economic growth that relies on consumer-driven has a positive effect on employment which is lag. Although the increasing of consumption will increase the employment rate in future economic cycles, the economic growth that relies on consumer-driven can’t suppress the trend of the rising unemployment in the short term.To smooth the transition in reform of the supply front, we should coordinate the reasonable ratio of consumption and investment in economic growth to ensure the full employment in the process of industrial structure adjustment.

Key words: Consumption investment   Employment   VARDL model