This paper builds a theoretical model that biased technical progress impacts on employment growth by CES production function, and makes an empirical analysis through Chinese manufacturing data from 1987 to 2013. The empirical results show that the relationship between capital and labor is complementary, and that technological progress is biased to capital in the industry during 1987-2013. The empirical results also show that capital-biased technological progress inhibits employment growth, which is obviously declining from 2000 to 2013 by comparing to it during 1987-1999. Meanwhile, technology path is characterized by capital substitution of labor in most industries, and the increasing wage leads to capital substitution of labor, however, the technological progress in labor-intensive industries has small substitution of labor. Therefore, in order to achieve technological progress and employment growth positive interaction, the government should strengthen the introduction of advanced technology and management of macro-control, reduce the rate of capital replacement of labor, and achieve positive interaction of technological progress and employment growth.