The paper analyzes a series of recent data to demonstrate that,although the overall employment situation is improved,both dramatic change of population structure and the decreasing rate of labor increment contribute to the shortage of labor supply.Moreover,since a significant percentage of youth still want to pursue their education,which leads to further shrinkage of peasant workers who only finished their junior high school education.On the other hand,there is an unbalanced labor supply and demand for the labor intensive industry,which exacerbates the current situation of labor shortage.Additionally,the accelerating rate of economic development in central and western China also contributes to the increasing demand for all level of workers.Therefore, employers from eastern and mid-western China have to compete for workers in the process of recruitment.Meanwhile,factors such as lack of labor contract protection,the misuse of labor dispatch contract,and the low salary in traditional manufacturing industry,also make those entry and middle level jobs unattractive to peasant workers.Facing those challenges,government should step up and make effort to improve working environment and push for higher salaries for peasant workers.In the meantime,government should allocate public resource in urban area based on the real number of urban dwellers instead of "registered residents".On the other hand, business sector also needs to make some improvement to attract peasant workers. <<