Abstract: Foreign demand is an important engine of employment. Exploring how to effectively improve domestic employment embodied in foreign demand from the perspective of global value chains (GVC) is an important issue to promote employment growth in China. Based on the data of industries of China from 2005 to 2014, this paper empirically studies the impact of GVC position on the domestic employment embodied in China’s foreign demand and explores the moderating role of industrial digitization. The results show that the increase of GVC position could significantly improve the domestic employment embodied in foreign demand. The employment creation effect brought by the increase of GVC position is mainly reflected in service industries and low- and medium-tech industries. The increase of forward participation could improve the domestic employment embodied in foreign demand, while the increase of backward participation does not have a significant effect. The influence mechanism analyses show that increase of GVC position could effectively improve the domestic employment embodied in foreign demand through expansion effect of foreign demand and the improvement effect of labor productivity. The moderating effect shows that industrial digitization positively moderates the employment creation effect brought by the increase of GVC position, and the positively moderation effect of digital services is more obvious compared with digital manufacturing.