This paper mainly analyzes change of employment in Taipei. First, under consideration of locational factors, we introduces three types of urban employment model Second, economic base theory is applied to study the employment change in Taipei. Comparing location quotient with growth rate of every industry and profession, we find that Taipei's basic industries show a declining trend. This implies that employment of Taipei is in an adverse position. At the same time, we examine industries which are crucial to the employment growth of Taipei. During the period of 1978-1996, commerce industry and finance, insurance, real estate and business services industry, both are main generators of Taipei's employment growth among basic industries. Their multiplier effects of employment are 1.22 and 6.07 respectively. This implies that increment of one worker on both industries will generate 1.22 and 6.07 employment opportunity respectively.