This paper discusses the role of labor force in industrialization in Algeria by entering the spending in education as a mediator variable. From a theoretical point of view, there are good grounds for believing that labor force can play an important role in promoting industrialization, but if education had been incorporated in manufacturing, this will facilitate the conduct of manufacturing operations. At this, the authors will use the method of Path Analysis in order to calculate the impact of the labor force on industrialization in Algeria with the presence of education expenditure as a variable mediator during the period from 1970 to 2014. It is therefore concluded that education expenditure plays an important mediator role in the enhancement of workforce's capacity to strengthen manufacturing in Algeria during the study period.