Based on local government intervention motive under the control structure of Chinese private enterprises, this paper uses the empirical data of private listed companies to systematically explore the effect of government intervention on private listed companies'employment behaviors, and the role of control rights of controlling shareholders in this intervention process & economic consequences at theoretical and empirical levels. It comes to the following conclusions:firstly, control rights of controlling shareholders moderate the relationship between government intervention and staff size of private enterprises, and in private enterprises with large controlling rights of controlling shareholders, government intervention could significantly increase the staff size because of low transaction costs or negotiation costs; secondly, this kind of government intervention reduces the efficiency of the employee allocation, leading to the increase in labor costs and the degree of employee redundancy. It provides theoretical basis and decision reference for further understanding of local government intervention on enterprises to some extent.