Industry as leading industries of China’s economy，today and the future for decades, must be the main driving force to stimulate economic growth, which plays a vital role in rapid economic and sustainable development. However, in recent years, industrial labor’s share of income shows a downward trend in China’s income distribution. In this paper, movements of the share of labor income are analyzed with China’s industrial sector data from 1995 to 2009.The author analyzes the reasons that may cause the labor share of income of China’s industrial for the decline mainly from China’s labor market structure, employment and career of equal rights, economic inertia and other institutional factors, and puts forward policy recommendations.