Thanks to the diminishing increase in working age population and strong expansion of employment in rural and urban areas，China’s labor market situation has been fundamentally changed-that is，the economy is no longer characterized by unlimited supply of labor since its surplus labor force has been run out. Despite the long-term trend of labor market，the various shocks confronted by the Chinese macro economy in 2008 have caused short-term slowdown of employment growth and increase of cyclical unemployment rate. Based on analysis of such shock factors，this paper tries to suggest a set of policy recommendations to sustain the economic growth and expansion of employment.