The Commission on Education and Employment Opportunities for Young People (Youth Commission) aims to find ways to improve education and employment opportunities for England's 16-24-year olds. The Commission's first report (see ED604277) identified five key challenges: (1) Better supporting 700,000 young people not in education, employment or training; (2) Increasing the number of people qualified to at least Level 3; (3) Improving attainment in literacy and numeracy and other basic skills; (4) Creating a diversity of higher level learning routes through life; and (5) Support job quality, career progression, and economic security. This report considers the implications of changing demographics and labour markets -- these alter the context for tackling these challenges -- and draws out the implications for learning, skills and employment systems and support. This will inform development of recommendations to meet the five challenges and ensure every young person has the best opportunities in life. [The Learning and Work Institute's Youth Commission will run for one year and is supported by Association of Colleges, Capital City Colleges Group, London SouthBank University, NOCN and Prospects.]