This study focuses on the impact of the expansion and development of higher education on China's economy and labor market, and studies its impact from the perspective of over education. This study finds that the expansion of higher education in China increases the demand for labor, improves the overall quality of labor, and stimulates economic development. China's over education has affected the labor market, reducing the participation rate of youth in labor, and increasing the employment and unemployment rate of labor force with higher education level.By comparing the unemployment rate of workers with different levels of higher education, it is found that the reason for the rise of the unemployment rate is that the supply of workers with higher education level is greater than the demand, which results in internal competition.It is found that employment difficulties do exist, and the education level of the labor force will determine the advantages and disadvantages of the labor market. At the same time, it also explains why the youth labor participation rate has declined.