Abstract: By forming a variable intercept panel data model, the paper empirically analyzes the impact of labor costs on the profitability of listed companies in China’s textile industry. Research indicated that labor scale, average labor costs, and corporate competitiveness have a significant impact on corporate profitability;executive labor costs and labor cost gaps affect corporate profitability little. On basis of that, the paper put forward several suggestions on improving the profitability of textile enterprises.

Key words: labor cost; textile industry; listed company; profitability