Abstract: The early-warning model of unemployment has been constructed based on diffusion index method nowadays, but limited by the defect of traditional diffusion index method, the actual unemployment warning effect of the determined “line” is not ideal. Therefore, the paper builds the unemployed early-warning model based on the optimization of the diffusion index method, and holds the conclusion that our country did not appear alarm in the present, but it needs to attach great importance to the fact that unemployment rate diffusion index showed a rise trend. So accordingly puts forward two basic path against unemployed early-warning, the one is adjusting reasonably the investment structure, increasing investment in key areas and improving the efficiency of investment, and the other is improving the residents’ income level, encouraging actively innovation and entrepreneurship, promoting the Consumption upgrade.

Key words: Early-warning Model of Unemployment, Optimized Diffusion Index Method, Empirical Study