Population aging and human capital improvement are two trends in human resources development, however, population aging can reduce the effective supply of labor force and further restrain economic growth. Human capital improvement can raise labor productivity, further boost economic growth and can “hedge” the restraining effect of population aging on economic growth by increasing effective supply of labor force. This paper adopts Dynamic System GMM model by using panel data of 31 provinces, autonomous districts and municipalities in China from 2000 to 2017 to conduct empirical analysis. The results show that population aging is not conducive to employment growth, and has a negative impact on China's economic growth, but human capital improvement is helpful to employment growth and has boosting effect on the improvement of economic development level. The improvement of human capital level can weaken the restraining effect of population aging on economic growth and produce “hedging effect”. From the perspective of regional heterogeneity, this “hedging effect” is strongest in central area, followed by west area and is weakest in east area. Under the background of the deepening of population aging tendency, we should change economic development mode, optimize and improve labor supply structure and quality by sustainable improvement of human capital level, and further weaken and offset the negative impact of population aging on economic growth so as to realize high quality development of economy.