This paper primarily concentrates on the causation of labor mobility and laid-off workers in China. In order to realize the causation of the Chinese labor mobility in urban and rural China after 1978, this paper has collected data and materials about institutional changes of labor management in China. This paper has found that China¡¦s rural labor migration to the urban labor market has been steadily rising. Because of the gap between urban and rural wages, pressures on the urban job market have increased, while urban labors migrating to the rural job market has been minimal. The institutions for labor management in China have undergone changs, and although central and local authorities have inacted various restrictions on labor migration, these restrictions have been a statistic bias and lacked in real effects.