The decline in absolute number of working age population in 2012 indicates the beginning of the disappearing of the demographic dividend in China. As a consequence of the resulting slowdown of potential growth rate, a growth rate below 8% did not cause employment shock in this year. Corresponding to the transition of development pattern from dual economy to neoclassical growth, the Chinese laborers are confronting with more structural and frictional employment difficulties. This chapter analyses the vulnerability of migrant workers, urban locals, and college graduates in labor market and proposes policy suggestions. The author suggests that the government responsibility at this stage is to invest more public resources in education and to create better institutional environment for labor mobility that is essential for getting incentives right. <<