Although the input–output model has been widely used for both pure economic analysis and environmental issues, demographic analysis has been relegated to the periphery in the input–output literature. Since the 1980s, Batey and his various co-researchers have made a significant contribution to the progress of economic–demographic modeling from the perspective of unemployment in the context of shrinking regional economies. This study focuses on another demographic aspect of the urbanization process by developing an extended input–output model for urbanization, using the so-called Batey–Madden model, which focuses on incorporating labor accounts with the input–output model. The study proposes a new “urbanization multiplier,” which implies strong population concentration in cities based on an employment multiplier in urban areas and labor allocation possibilities between urban and rural areas. According to a preliminary application to Chinese urbanization, economic structure can be said to determine the urbanization multiplier, indicating the extent of employment opportunities created in urban areas, and the size of the population attracted from rural areas. Furthermore, the study considers a wide range of possible applications of the input–output table in terms of urbanization.