Accelerating the transfer of labor from agriculture to the secondary and tertiary industries not only benefit solving the issues of agriculture, farmer and rural areas, but also enhance the persistent and healthy economic development in China. Based on the structuralism growth theory and by using the dynamic estimate of industrial output elasticity of factors, this paper breaks down the growth rate of TFP and calculates the labor allocation effect in China during the past 30 years. The results show: firstly, there are great differences in factor output elast