Abstract: The transformation and development of enterprises applying digital technology is the kernel guarantee to promote the high-quality development of China’s digital economy, and the resulting impact and influence on the micro labor market is an issue that needs to be urgently resolved for the development of the country’s major strategies. Based on the data of Chinese listed companies from 2011 to 2020, this paper takes a micro perspective to explore the impact of digital technology application on the employment structure of enterprises and the mechanism underlying the impact. It is found that the application of digital technology has an “inverted U-shaped” relationship with the total number of employees and the number of unskilled employees, but there is a significant positive relationship with the number of skilled employees, indicating that the application of digital technology can help optimize the employment structure of enterprises and thus has an empowering effect. Further analysis reveals that the application of digital technology affects the employment structure of enterprises mainly by enhancing innovation capability, affecting the level of skill premium, and improving productivity. The spillover effect of digital technology on enterprises varies significantly, depending on their production scale, social burden and likelihood of being substituted. The relevant conclusions bring more empirical support for clarifying the mechanism of how digital technology influences the employment structure of enterprises, and provide certain policy insights for promoting the integration of digital technology with the real economy.

Key words: digital technology adoption, employment structure, skilled employees, unskilled employees