Abstract: In the view of continual creeping of the unemployment rate in China, the Todaro Balanced Unemployment Rate Model was used to calculate the balanced unemployment rate in the past years. The model can reflect the existing employment situation more exactly for considering the economic factors such as the economic growth, labor natural growth, rural population flowing caused by the different incomes and the chance of employment. The balanced unemployment rate was simulated according to different employment chance by the Todaro Balanced Unemployment Model and then the unemployment rate at present was estimated, which is about 8 %. After that, by using the Employment Elasticity Theory the employment situation of the three industries was analysed and a conclusion that thedescend of the employment elasticity is one of the reasons that cause the unemployment problem was drawn. Some suggestions were put forward for the policymaking.