In 2016，under the background of the supply-side structural reform and the downward pressure of China’s economic growth，the employment situation has been stabilized. At the same time，the structural contradiction has become more significant，and the progress of wage increase has been more cautious. The State Council has promulgated policy prohibiting the delay of salary payment. The policy regarding lowering social insurance premium rates and the deferment of retirement will be promulgated soon. The situation of occupational safety maintains at a stable stage. Law of the Peoples Republic of China on Prevention and Control of Occupational Diseases removes the barriers in the process of the prevention of occupational diseases. On the other hand，the amount of labor disputes keeps increasing，while the amount of collective actions relating to labor dispute has been decreasing slightly. The reform of Labor Union has made new progress：all levels of unions have relocated their functions；the organizational framework has be optimized，the management team has been diversified；both the appointment system and the part-time members have been implemented；the working arrangement has re-oriented towards employee-centered structure；new areas of labor union have been explored with better networking structure and socialization mode. The paper also carries out analysis on the labor policy in the areas of deregulation and the improvement of labor market flexibility under the background of the supply-side structural reform.