How does labor risk affect corporate’s bond financing? Using the unique institutional feature of government regulations in China, we provide robust evidence that firms with a larger employment size have significantly better access to bond credit. This effect is more pronounced in times of local labor market deterioration or economic slowdown, for low-skill intensive industries, or in places with career-driven government officials. Our results are not driven by differential financial constraints or information frictions. We further show that the employment bias allocates bond credit towards under-performing large employers and the performance-enhancing benefits from bond issuance diminishes with employment size.