I have a yellow lab myself and I know how you feel. Mine are just like you described and it hurts like he** when he tries to pad me or tries to jump on me on the odd occasion. He has scrapped up my roommate's leather sofa and recliner from getting up and down everyday. It's a good thing I'm vegan and my sofa is made of cloth since he takes turns from one to the other throughout the day. Anyway, I just want to say that I do agree with the other comments made by others that you don't want to soften their paws because it's protective. However, it's a little different when he is constantly drawing blood trying to love you.
I solved my dilemma when I recently switched my dog's daycare. His new daycare offers a spa service called pad shaving and it smoothes out the toughness and makes the paws much more bearable. It's not a permanent fix since he goes out everyday and plays his heart out. I try not to get them done too often but about every 3 or 4 weeks. Life has gotten so much better now that I don't have to worry about him scratching up anyone. If none of the other suggestions work, you may want to see if anyone in your area provides that service and give it a shot. Good luck!!