Regardless of in statutory law countries or case law countries, there have always been voices criticizing the rigidity of labor law. This study sorts out the practical challenges of the labor law and looks forward to its future prospects. Research suggests that, against the background of the overall relaxation of labor relations, the functions of group labor laws have declined worldwide, and the deregulation and employment elasticity factors have continued to grow. The widespread use of IT and the rise of the Internet economy have brought unprecedented challenges to labor law. Objectively, the labor law has its practical problems of rigidity and lag. Besides, there are still realistic issues of labor law protection for migrant workers caused by the dual social structures in our country, which have not been completely resolved yet. In the future, labor law should also resolve a series of issues of shrinking "business organizations" after the reform of public institutes in our country, and ones brought about by the advancement of scientific technology, artificial intelligence, labor replaced by robots, and the expansion of labor law to the field of social security etc. Despite numerous challenges being faced with, labor law and social security law can support one another to resolve future tough issues.