Under the new development pattern, the supply-side structural reform aims to realize the optimal allocation of factors by adjusting the economic structure, so as to achieve both qualitative and quantitative improvement of the economy. The labor, the first of the supply-side factors, should be given a correct position in the supply-side reform, that is, the entry point and the center point of the reform. Taking the input of labor factors in quality as the entry point and the overall improvement of labor quality as the center point will help the benign development of the internal economic cycle, and promote the integration of production, circulation, distribution, consumption and other links. The reason is that labor is the fourth major factor on the supply side, and the motive power of independent innovation depends on the continuous improvement of complex labor. Therefore, it is necessary to improve labor capacity to improve innovation capacity and establish a new division of labor system that is suitable for the development of productive forces and scientific and technological progress. Besides, the labor factor is an important hub linking the supply side and the demand side. The improvement of labor factors is both a consumption behavior and an investment behavior, which can promote the upgrading of consumption and enhance the power of economic development. To clarify the internal logical relationship between the supply-side reform and labor factors is of far-reaching significance for promoting the supply-side structural reform under the dual economic cycle model.