Abstract
This paper discusses the relationship between oil consumption and employment growth in 20 provinces of China. In the study, we mainly use the methods of co-integration and Granger causality. The result indicateds that in different kinds of provinces, there are different kinds of Granger causality between oil consumption and employment. In some provinces, such as Shandong province, Liaoning province and Zhejiang province, there exists one-way Granger causality between the two variables; in Jiangxi province, there exists two-way Granger Causality; while in other provinces, there is no Granger Causality among them. The result is highly correlated with the industrial structure, the structure of economic development and the preferences of energy resources in certain cities.
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