Through the analysis of the main cause for unemployment pressure that Inner Mongolia faces despite its economic development, the paper puts forward the following suggestions: decrease government direct investment by changing the path of macroeconomic control and adjusting the operat ion mode of f iscal policies; change economic growth mode and handle the relationship between development of labor-intensive industry and capital intensive industry in a proper way;reinforce the development of tertiary industry;advance overall quality of labor force by strengthening human resources development and training, Vigorously support the development of non public economy to create a virtuous cycle between economic development and employment improvement.