The dual effects of increasing average life expectancy and low fertility have accelerated the process of the aging society in China and brought about many challenges to China's labor market and sustainable economic development. The elderly labor market in China has huge potential. Making full use of the population aged 51-64 will effectively increase China's labor supply and achieve a secondary demographic dividend. Based on the analysis of the current potential of the elderly labor market in China and the full use of foreign experience, this paper proposes ways to develop the elderly labor market in China, such as implementing a delayed retirement policy, encouraging flexible employment for the elderly, strengthening the elderly labor training, and improving the social service system.