In general, college students prefer to work in the areas with developed economy and favourable policies. Their ability to select employment areas is greatly affected by a unique internal quality: psychological capital. This paper attempts to disclose the relationship between the psychological capital of college graduates and their employment area selection ability. To this end, a questionnaire survey was performed among college graduates in northeastern China, and the results were subjected to correlation analysis. During the analysis, the psychological capital was examined from four dimensions, namely, self-efficacy, optimism, hope and resilience. The results show that college graduates prefer first-tier cities or provincial capitals; the self-efficacy and resilience are the top two determinants of employment area selection ability, and are greatly affected by gender, family origin, student cadres and academic record; the psychological capital of college graduates has a significant positive impact on their ability to select employment areas, laying a strong basis for predicting the selection of employment areas. The research greatly promotes the analysis of employability of college students.