The purpose of this paper is to examine basic structure of the employment system for the college graduates in China during planned economy period. Under planned economy system, college graduates were recruited centrally by the governments, and tuitions, fees and stipend were given by the government, and job placement of the graduates are done by the governments in cooperation with colleges and universities. National department of education, national department of planning, national and local governments, public corporations and national and local colleges and universities had played their distinctive roles. The principles and roles of these organizations are examined in detail. In addition, actual job placement of new graduates was analyzed by using student records in a college. Educational achievement determined the first destination of the graduates, and the higher achiever got academic and professional jobs suitable for college education.