This paper uses China Rural Household Survey data to empirically examine the impact of non‐agricultural employment on rural household consumption. Using the nonagricultural employment rate of the village as an instrumental variable, this paper found that the total annual living consumption of non‐agricultural employment households is significantly higher than that of agricultural employment. Mechanism analysis shows that income increase and marginal propensity to consume are the possible mechanisms for local non‐agricultural employment to promote rural household consumption. The quantile regression results show that the consumption effect of non‐agricultural employment is more obvious for low‐income households.