Abstract: The impact of pollution abatement policy on economic development and employment is one of the most important problems concerned by local governments. The effect of pollution abatement on employment was investigated using data from 30 regions in China from 2005 to 2010. It was found that pollution reduction by project had no significant effect on the employment. Either pollution reduction by restructuring or pollution reduction by management is good for the employment. Therefore, there is no need for local governments to excessively worry about the negative impact of pollution abatement on employment. On the contrary, the pollution abatement policy should be made full use of to promote employment.