This paper addresses an obvious but neglected feature that the effects offiscal policy on employment vary substantially depending on how we spendpublic funds in addition to how we raise tax revenues. Tax revenues raisedfrom distortionary taxation can be recycled to the economy in various forms,ranging from lumpsum transfer, pure leakage in economic activity,leisure-based transfer, to work-based transfer. We consider each of theserecycling schemes and then examine how the current fiscal policy structureaffects the employment level using the data about government expenditures.Finally, we draw some useful implications regarding the recent jobless growthphenomenon.