As a result of deepened economic system reform and intensified structure adjustment in recent years，employment problems in urban areas have become ever pronounced. Employment is the foundation of people’s livelihood，which is closely related to the immediate interests of people. In the Decision made on the third plenary session of the CPC’s 16th NPC，expanding employment should be put on a prominent position on the agenda of social and economic development. Active employment policies should be made to improve entrepreneurship and employment. Further reform on labor employment system is an important measure to alleviate employment contradiction.