Abstract: This paper selects panel data of Zhejiang cities from 2003—2019, establishes a PVAR model, and uses impulse response function and variance decomposition methods to examine the long-term dynamic effects of agricultural productive service industry agglomeration, farmers’ employment growth, and urbanization in different regions of Zhejiang Province. The results show that the agglomeration of the agricultural production service industry, farmers’ employment growth, and urbanization all have self-developing inertia. The agglomeration of the agricultural production service industry positively affects farmers’ employment growth in northeastern Zhejiang Province but inhibits it in southwestern Zhejiang Province. Urbanization in northeastern Zhejiang Province inhibits farmers’ employment growth, while urbanization in southwestern Zhejiang Province promotes farmers’ employment. The relationship between urbanization in northeastern Zhejiang Province and southwestern Zhejiang Province and the urbanization in the northeast and southwest Zhejiang has a positive relationship with the agglomeration of agricultural productive services. Therefore, we suggest: the positive effect of farmers’ employment on agglomeration should be strengthened; the agglomeration development of the agricultural production service industry in the province should be coordinated; the urban-rural linkage mechanism should be improved to promote the positive interaction and synergistic development of agglomeration, employment, and urbanization.