For the industrial economy, its development is closely related to social welfare, and the two influence each other. Therefore, the role of social welfare on social and economic development strategies and directions cannot be ignored, and the adjustment and innovation of social welfare should be used to win a more favorable institutional environment for the industrial economy. In the context of innovative social governance, it will help to make the country's labor and social welfare security system more complete and provide more effective social welfare and security for social members, but at the same time, social members should also actively participate in social welfare. In the further construction and development of the security system, a better supervisory role will be played. This article studies the social welfare in the industrial economy and uses distributed algorithms to optimize the impact of social welfare and regulation on the industrial economy, so that the new thinking of the social welfare security system will also provide a certain guarantee for the continued development of the national economy, allowing that the industry to the economic development in society has become more stable, the gap between the rich and the poor has narrowed, and the efficiency of social management has been improved.