This study focuses on the unexplored informational role of labour dividend in the municipal corporate bond (MCB) market given China’s distinctive institutional origins. We aggregate the annual employments of public firms to the prefecture-city level and find that the firms’ employments aggregated are positively associated with contemporaneous scale of the MCB, whereas negatively associated with the issuing rate of the MCB. In the further analyses, we find that this information externality is conditional on the attributes of the employment characteristics (i.e., education, functional departments, and ownership nature). Mechanism analyses indicate that information accessibility, processing, dissemination, and efficacy are important channels through which the aggregate labour intensity is mobilized. And such information externality is reinforced after an institutional change enhancing the authenticity of employment information. This paper echoes previous studies of the macro value of aggregate accounting information and enriches the literature in labour and finance by highlighting that the labour dividend still exists and triggers MCB issuance in China.