In the process of urbanization, employment is key for land-losing peasants. Results of research on the 4 pilots of Homestead-for-Housing in Tianjin show that after Homestead-for-Housing, peasants’ income increases rapidly, but expense increases more rapidly, which results in the net income reduction, and the employment is dissatisfying of 50.67% unemployment in 2012 and 36.44% families living on subsidies by government. The analysis on the game between government behavior and employment of land-losing peasants shows that too much monetary compensation and unemployment security harm peasants employment willing, while effective employment service of government can promote employment of Homestead-for-Housing peasants. Therefore, government should improve compensation system, construct settling system for land-losing peasants, improve social security system, provide effective employment service to promote employment and lower job hunting cost.