Using panel data of 30 provinces in China from 2001 to 2010, this paper analyzes the impact of technical advance on industrial structure and urban-rural employment in China. It illustrates that technical advance has made limited impact on the structural change of industries, so does the urban-rural employment. Structural change of industries is beneficial to urban-rural employment, but structural transfer hasn’t turned out to be satisfactory. In the policy, it suggests that the government should greatly improve the technical choice to be more independent, technical advance to be more endogenous, industrial structure to fit the human resources better, regional industrial layout to get optimizer, and system reform to go more deepening.