Abstract: Although technical progress is not conducive to the growth of employment in short term, it can increase employment through the various channels in the long run.By using the cointegration test and granger causality test，we analyses the relations of  employment, technical progress，average wage and the fixed asset investment from 1952 to 2004, it turns out that in long term technical progress increases the employment, average wage has no significant effect, the fixed asset investment decreases the employment.

Key words: technical progress, employment, cointegration test