When the Legislature and Governor enacted House Bill 3103 in 2004, they intended to improve the quality of information available to help policymakers determine how well Washington's higher education system was meeting employer demand for skilled workers. This is the second joint report published by the three agencies in response to the 2004 statute; the first report was released in 2006. The report includes an updated analysis of the workforce supplied by higher education institutions in Washington, employer demand for higher education as measured by the number of projected job openings, and the match between supply and demand. This update also includes new detailed analysis of specific occupations within the following areas: engineering, health professions, and education. This report also serves as part of the state needs assessment process, which will include a forthcoming statewide and regional analysis of student, employer, and community demand for education and training at the baccalaureate level and above. It compares forecast employment openings through 2016 with the current output of students who have completed one year of college through post-baccalaureate education. It is important to note that this report is based on forecasts of economic trends existing prior to the current economic crisis. These long-term projections could be inaccurate if the recession and recovery periods unexpectedly last for an extended number of years or if the recession causes long-term structural changes in the state economy. Otherwise, we can expect these trends to hold, and for the supply gaps in high demand programs of study to continue to remain a problem for the Washington economy. Appended are: (1) High Demand Logic Model; (2) Common Definitions Relating to High Demand; and (3) Selected Recent Publications on Skill Demand and Supply Gaps in Washington. (Contains 2 tables, 15 figures and 25 footnotes.)