In recent years, the coal industry has been in a downturn. The Shanxi economy, which relies too much on the production, sales and processing of raw coal, is hard to regain its glory. The article compares relevant economic data, systematically analyzes the status quo of Shanxi's industrial structure, and believes that Shanxi has a degraded phenomenon of deindustrialization. In order to accelerate industrial in Shanxi upgrading under the mechanism of benign de-industrialization, the paper believes that Shanxi should revitalize the development of Shanxi's industrial economy with the improvement of labor productivity as a starting point to promote the optimization and upgrading of industrial structure.