Based on an analysis of China's current employment situation, structural characteristics of urban floating population and competitive forces in the employment marker, this paper points out that there is a positive effect in the urban employment of floating population since it supplies cheaper laborers and their reserves for cities, and that there is a negative effect on local people's employment and wages because of competitions in the labor market. To relieve the current urban employment pressure, it is of great significance to rationally consider influences of floating population on urban employment and to work out proper urban employment policies.