Abstract: In recent years, with the gradual development and exploration of educational undertakings in the market economy environment, many prominent problems affecting the development of education have also been revealed. For example, the contradiction between supply and demand of education is one of these urgent problems. The contradiction between educational supply and demand mainly arises from two aspects:on the one hand, the contradiction between the education needs of individuals and the education needs of society; on the other hand, the contradiction between the education needs of society and the supply of education. The contradiction between supply and demand of education is concretely embodied in the following aspects:the research talents trained by education and the needs of the society do not meet the needs of technical talents and the irrational allocation of educational resources areas. The main causes of these contradictions are the society, the market, the government and the education. Therefore, we must deepen the combination of government and market, expand the degree of freedom of education development in the market economy, strengthen government guidance and supervision, and closely combine educational supply and market demand.