All the regions in China have been showing different growing situation in the field of industrial structure and the increase of factor productivity since we implemented the regional development strategies of the East taking the lead in development, the West development program, the Middle rising sharply and the Northeast invigoration. This paper, based on provincial 1997—2008 panel data, tests the contribution of industrial structure change to the increase of labor productivity by means of shift-share model which can disintegrate factor productivity into technical progress and industrial structure change. The researches show that, in recent 10 years, China’s labor productivity progress mainly comes from internal technical efficiency increase of industries, however, the contribution of industrial structure change also can’t be ignored; industrial structure adjustment in the west is effective; however, the industrial structure adjustment in the three provinces of the northeast is not ideal; in each region, the allocation efficiency of labor forces presents a trend of dissociation. Research indicates that there is a larger space for labor force allocation to promote productivity increase and that it is still a long-term and tough task for industrial structure adjustment in China.