Abstract: At present, the domestic and international situation is undergoing profound and complex changes. On the one hand, the world situation is intricate and changing rapidly, and unstable and uncertain factors have increased significantly; on the other hand, due to the impact of the epidemic, the downward pressure on the domestic economy has increased significantly. Labor employment presents serious challenges. In view of this, we urgently need to find a realistic path for the stability and high-quality employment of the Chinese labor force, which is of great significance to the current economic development and social prosperity. In the era of digital economy, the impact of digital transformation on labor employment of manufacturing companies has received increasing attention. Based on the data of listed Chinese A-share manufacturing companies, this paper finds that digital transformation has significantly promoted labor employment and has become a strong driving force for expanding labor demand and stimulating employment in the digital economy era. In terms of impact mechanism, digital transformation can promote labor employment through three channels: market scale effect, business scope effect and productivity effect. Research based on heterogeneity found that for high-tech companies, technology-intensive companies, and companies in the central and western regions, the employment promotion effect of digital transformation is more obvious. Finally, this article also finds that digital transformation can increase the proportion of highly educated and highly skilled personnel, thus optimizing the labor structure of enterprises. Compared with the previous literature, this paper makes expansions in the following three aspects: First, this paper not only studies the overall impact of digital transformation on employment scale, but also sorts out three mechanisms of market size effect, business scope effect and productivity effect, and conducts empirical tests on this basis. The research enriches the theory and empirical evidence of the micro-effects of digital transformation, thus making up for the deficiencies of existing research. Second, this paper further examines the impact of digital transformation on the employment structure, and finds out that digital transformation will increase the proportion of highly educated personnel and highly skilled personnel, improve the human capital structure of enterprises, and form a useful supplement to the microscopic research on human capital. Third, this paper introduces factors such as industry attributes, location, and factor density into empirical analysis to explore whether digital transformation has a heterogeneous impact on the human capital of manufacturing enterprises. The research of this paper reveals the internal mechanism of the impact of digital transformation on the employment scale and structure of enterprises to a certain extent, and has important implications for all parties in the labor market. For individual workers, it is necessary to have a deep understanding of the structural changes in the labor market, pay close attention to new technologies, new formats, new products, and new business models emerging in the process of digital transformation, so as to achieve high-quality matching with the labor market. For colleges and universities, it is necessary to strengthen the quality of personnel training to ensure that graduates have the corresponding job skills. From the government's point of view, the level of public employment services should be further improved to help workers and enterprises better cope with structural unemployment.