Grounded in the theory of New Structural Economics, this study investigates the impact of government-driven informatization initiatives on firm employment. Using data from China’s A-share listed manufacturing firms from 2003 to 2020, we exploit the establishment of the National Pilot Zones for the Integration of Informatization and Industrialization as a quasi-natural experiment and apply a staggered difference-in-differences model. The results indicate three main findings: First, the integration significantly increases firm employment, with a more pronounced effect in state-owned enterprises, larger firms, technology intensive industries, and firms in cities with stronger human capital environments. Second, the integration influences firm employment through three channels: reducing environmental uncertainty, alleviating agency problems, and easing financing constraints. Third, the integration effectively improves the efficiency of firms’ labor investment.

integration of informatization and industrialization, firm employment, informatization, New Structural Economics