There are still impediments in the dual-cycle system. Supporting the construction of the new development paradigm featuring dual circulation to promote economic growth and high-quality full employment by policy measure is an active strategic choice to adapt to China's new development stage. This study, using the super-efficiency SBM and Malmquist models, evaluates the policy performance of promoting high-quality and full employment through dual circulation from 2012 to 2020. It also explores the pathway configuration to improve policy employment outcomes using dynamic QCA methods. The research findings show that the national average of policy performance during the study period is still far from the effective frontier. Regionally, there is a clear gradient distribution of performance among the east, central and west regions with significant internal differences. Different provinces are faced with issues such as input redundancy and insufficient output, indicating inefficient utilization of policy resources. From the dynamic perspective, it can be seen that most regions show a fluctuating downward trend in policy total factor productivity, indicating insufficient policy effectiveness and a need for improvement in policy resource management efficiency and policy reform innovation. The research suggests that efforts be made to shift policies towards being efficient, sustainable, and innovative. Moreover, the establishment of demand and distribution policies should also be emphasized, along with the optimization of policy paths based on local conditions to enhance policy output.