Under the analytical framework of neoclassical theory, this paper estimates total factor productivity growth and technology progress bias in China by the data of 1978—2013, and employment growth is decomposed into capital growth, total factor productivity growth (neutral technology progress) and technology progress bias. The analysis shows that 1979—1989 technology progress bias is not obvious, but 1990—2013, technology progress is clearly bias towards capital in China, and capital input makes much more contribution to employment growth than technology progress bias and total factor productivity growth do. Therefore, the deepening of capital growth and the technology progress bias towards capital are the main reason why the employment growth lags far behind economic growth in China. In order to improve the employment growth, macroscopic policy system aimed at promoting employment growth should be established first; labor-intensive technology suitable for our country’s resources should be developed rapidly; the development of middle and smallsized enterprises should be accelerated.