The labor contract law is an important legal document after labor law. With the slowing down of economic growth, the revision and abolishment of the labor contract law has triggered further discussions in theoretical circles. This paper, from the economic theory perspective, sorts out and analyzes the three main arguments of flexible labor, labor cost and labor productivity in implementing the labor contract law. The results indicate that the growth of labor cost in our country is comparatively lower than that of the labor productivity. Thus, the implementation of the labor contract law can neither have significant impacts on employees’ wage rise, nor have significant improvement on their labor productivity.