Based on Baumol-Fuchs Hypothesis and its subsequent model, introducing a new variable which stands for lags in service wage growth rate, to establish a new econometric model to reveal the reasons of the increase of service employment share growth rate in Chongqing. An empirical study with relevant statistics data of Chongqing from 1985 to 2012 shows that: the increase of manufacturing industry productivity growth rate has a negative effect on the rise of service employment share rate. To enhance connections between the two sectors is the right way to increase the service employment share growth rate; the increase of service productivity growth rate has a positive effect on the rise of service employment share growth rate. Besides, it helps to avoid the “cost disease”; increasing service wage growth rate is an efficient way to improve service employment share growth rate.