China is experiencing a period of dual transformation, that is, the transformation of industrial structure from traditional agriculture to modern industrialization; and the second of these changes is an economic system transformation from a planned economy to a market economy. Therefore, the structural contradictions in labor market and resulting problems concerning the improvement of employability are presented more starkly in this context than in any others. On the basis of questionnaire survey, in-depth interview and reference to various literature and data, this thesis carries out systematic theoretical analysis, empirical research and policy evaluation on the issue of employability improvement of in-service staffs, students, veterans, rural migrant workers and the unemployed people. The basic conclusions are as follows: First, employability is a constantly changing concept whose meaning is enriched and expanded as labor market conditions change. As indicated in both domestic and international study, the concept of employability can be divided into "hard skills" and "soft skills" categories, with the latter one attracting extensive academic attention. Second, the improvement of entrepreneurial capacity has been an essential part of the development strategy that promotes job creation and encourages entrepreneurs to create more employment opportunities. Third, the awareness of career management of in-service staff is increasing, which makes the improvement of their employability a focal point to both organizations and individuals. Fourth, employees‟ employability can be enhanced through well-designed motivation systems such as skill-based pay, which also contribute to organization performance. Fifth, non-school vocational education enjoys a wide distribution and has a high rate of return to education, especially for technician certificates or higher level. This is a result of a serious shortage of technicians in current labor market. Sixth, college graduates employability has a substantial impact on their employment conditions and starting salary. Higher employability not only improves graduates‟ employment conditions but also enhances the skill-work matching efficiency and increase graduates' starting salary. Nevertheless, there's a gap between labor market requirement and higher education system such as school training purposes, teaching contents and teaching team. This has become a universal problem in China's colleges, universities and vocational-technical schools. As a result, differences exist in the understanding of employability between graduates and employers. Seventh, according to our research, it is an essential policy choice to understand the employment demand of veterans and provide employability training program to veterans of various levels, positions and job demands. Only in this way can we connect their employability development with the vocational qualifications authentication system. Finally, we find that increasing human resource investment in groups such as rural migrant workers and unemployed workers has been an issue of great significance. Therefore, it is necessary to formulate a national strategy of labor employability improvement that contributes to the development of Chinese human resource in the context of dual transformation.