The impact of environmental regulation on employment is mainly manifested through two channels：output effect and factor substitution effect.In this paper，we use the DID method to estimate the effect of the TCZ policy on the employment of 287 cities in China from 1994 to 2009.From one perspective of the whole sample，the TCZ policy implemented in our country is not conducive to the improvement of the total employment.The negative impact on the employment of the secondary industry mainly comes from the SO2 control area，as well as the tertiary industry from the acid rain control area.The implementation of this policy has a positive impact on the average wage of urban workers，mainly from the acid rain control area.From another perspective of urban scale，the negative effect on the employment mostly comes from the big cities.The policy makes the migration of labor forces from big cities to small ones，resulting in a significant increase in the employment of small cities in the first and tertiary industries，whereas the effect on the middle cities is mostly insignificant.The policy leads to the improvement of the average wages level in large cities，while the wages of small and medium city workers drop down.Finally，this paper puts forward some feasible suggestions from three aspects：the governments optimal choice of the environment regulation tool，the enterprises technological innovation and the high skill talent cultivation.