Abstract：The industrial structure of China is quickly upgrading，which leads to higher requirements for the human capital of the labor force. Based on statistics， this paper reviews China’s industrial structure upgrade since the reform and opening up in 1978 and estimates the contribution of industrial restructuring to economic growth. With the years of schooling as the proxy variable of human capital， this paper describes changes in China’s labor competence in the industrial restructuring process. On this basis and supported by economic and demographic forecast， this paper estimates China’s future human capital demand and shortage. At the same time， using the OECD method and the survey data in Henan province，it directly measures the human capital of the labor force in China. Lastly， this paper proposes recommendations for improving human capital in China from the two aspects of skills development and education.
