Abstract: As one of the traditional three factors, i.e., the key supply factor, the labor force has become an important aspect of economic growth and structural adjustment. By replacing the demographic dividend, the human capital dividend is becoming a growth point in China’s economy. Being different from the previous perspective of emphasizing the demand side, this paper regards the labor force as the supply side to interpret the new semantics of the human capital theory in the context of supply-side reform. From the perspective of the three elements and three dimensions of labor market, it analyzes specifically the existing deficiencies and potential advantages of labor resource allocation in the context of supply-side reform: the subject is faced with institutional obstacles but is gradually overcoming them, the object amount is generally lower in quality but is continuously investing, the behavior management is shifting from relying on the government to resorting to the market, the quantitative advantage in the scale is weakening but the technical and institutional advantages are appearing, the quality in general should be worried but is rapidly improving, the structure is developing from deformed development to focusing on optimization. Finally, from the perspective of government, business owners and laborers, it proposes some coping strategies for labor market optimization in the context of supply-side structural reform.

Key words: labor value theory; human capital; supply-side reform; labor market