>The environment of labor market has been improved since 2002，the ratio of informal employment to total employment in urban area decreased and formal employment increased rapidly in recent years.What the labor market policy concerned has been turning from providing social security into promoting employment，and then improving employment quality.The policies should focus on increasing labor supply and extending present advantages.China will not loose the advantage on labor intensive industry in the next few years，which provides a period for policy adjustment and searching for sustainable growth pattern.