Developing competence in the workforce for a changing economy is a challenge to a nations education system. This study examines what education and training systems have been made available to the workforce. For this study, in 1998, 31,736 employees were surveyed from 401 firms in 12 counties across China: four in two eastern provinces, four in two central provinces and four in two western provinces. The analysis found that, in addition to hiring graduates from the state managed formal school system, employers assumed responsibility for providing on-the-job training and delivering job skills to their employees. At the same time, employees also paid to receive education and training offered by institutions outside of their firm to develop skills to meet their own needs. The study also found that the provision of education varied among the three regions according to the level of economic development in those areas.