Abstract: Affected by the reform of national enterprises, both income structure and employment structure of China‘‘ s urban residents have changed a lot in recent years. Using two econometric models, we make analysis about the impact upon average propensity to consume (APC) and per capital real expenditure contributed by incomes and number of employees in different forms of ownership. This paper brings the following new ideas:( 1 )It is based on the impact upon APC by diversified incomes to infer consumption ratios, then to make further assess of the degree (2) The number of people with no income is usedof various employees‘‘ motives for precautionary savings.to reflect China‘‘s urban residents‘‘ employment situation and to measure motives for precautionary savings. (3)The effect on consumption by lowering interest rates can be inspected according to the relation between interest income and actual per capital expenditure. (4) It is estimated how the change of number of employees in various forms of ownership affects consumption.