Abstract: Under the background that the gross employment contradiction has been alleviated and the structural employment contradiction has become increasingly intensified, based on the provincial panel data of China from 2005 to 2015, this paper empirically investigates the effect of financial inclusion on employment by using ordinary panel and spatial panel model. The conclusions are as follows:the development of financial inclusion can significantly promote the level of the employment of the primary and third industries, undertake the structural and frictional unemployment of the secondary industry, and then promote the overall level of employment; The coordination of financial inclusion development among regions is insufficient, and the development of financial inclusion in surrounding areas has a negative spillover effect on employment. The effect of financial inclusion development on the overall employment in coastal areas is not significant, but there is more coordination among regions. The financial inclusion development in inland areas has a significant role in promoting the employment of all industries, but the coordination between regions is insufficient. Financial inclusion development promotes the level of employment in both producer and life services, but it has a negative spillover effect.

Key words: financial inclusion, employment increase, structural unemployment, spillover effects