The digital economy serves as a new driver for fostering higher-quality employment. This study employs a quasi-natural experiment based on the "Broadband China" pilot policy and applies a TV-DID model to investigate the impact of the digital economy on employment quality in the labour market. The results indicate that: (1) The digital economy significantly enhances employment quality in statistical terms, though its economic significance is relatively limited. Specifically, it raises wages and job satisfaction but also increases work intensity. (2) The digital economy improves employment quality by boosting productivity and optimizing the industrial structure. However, it also negatively affects employment quality by disrupting job opportunities, with the mediating effect of reducing spatiotemporal distance benefiting only high-skilled labour. (3) The positive impact of the digital economy on employment quality is not sustainable over time. (4) Within China's dual labour market, the digital economy has facilitated the entry of rural low-skilled labour into the labour market and improved their employment quality. It has also influenced the occupational choices of urban low-skilled and high-skilled labour, enhancing employment quality for urban medium-skilled and high-skilled labour. However, the employment quality of urban low-skilled workers has not significantly improved due to the crowding-out effect of rural low-skilled labour. The article concludes with policy recommendations based on these findings.