In the interactive relationship of the development of the rural factor market，it is a consensus in the academic circles that the socialized service of agricultural machinery has the substitution and crowding-out effect on the agricultural labor force. However，as an important force in the transformation of traditional agriculture，the socialized service of agricultural machinery has its own function of innovating agricultural operation methods and attracting rural laborers to stick to agriculture or return to their hometowns，which is not valued by mainstream literature. This article uses China Labor Force Dynamics Survey Data （CLDS） to analyze the impact of agricultural machinery outsourcing services on the rural labor force of rural households and migrant labor. The results show that the choice of agricultural machinery services by farmers will effectively replace agricultural labor，but it does not necessarily induce labor to go out for work，and even has a tendency to inhibit the transfer of rural labor to the urban sector. Especially at the village level，the improvement of mechanical farming services will significantly inhibit labor from working away from farmland. Mechanism analysis found that agricultural machinery outsourcing services will significantly increase the income of farmers in the rural sector. What’s more， villages that provide mechanical farming services are more likely to develop non-agricultural industries，thus solving the “mystery of the destination of rural labor transfer”. It is the function of socialized services to transform traditional agriculture and deepen its division of labor that determines the replacement of labor by agricultural machinery does not simply squeeze out labor，but expands the employment space in rural areas. The article argues that the development of socialized agricultural services will become an important strategy for rural areas and cities to compete for high-quality labor.