A harmonious labor relation is the basis for economic and social stability. In the paper，the evolution of labor relation in China from 1995 to 2012 and characteristics of the evolution were analyzed. In the analysis，the facts indicating increasing complication and tension of labor relation，such as significant increase in both quantity of labor dispute cases and quantity of parties of labor dispute，were found. Among the causes of employee-employer conflict，remuneration，social insurance and labor contract are the top 3. Measured as either of share in total of labor dispute cases and occurrence of labor dispute per RMB 0.1 billion of GDP，the instability of labor relation still significantly leans to East China，but is spreading to Central China and West China. On the basis，suggestions on policies were given.