Evidence gathered through interviews with members of trade associations, unions, professional societies, business, and industry as well as data obtained from the Department of Labor, congressional testimony, and publications of the commerical and trade press reveals that the shortage of skilled workers in America is reaching crisis proportions. Among those areas facing acute worker shortages are the health care industry, high technology occupations, the machine tool industry, and office occupations. In order to solve this skills shortage, federal efforts should focus on a long-term plan for building the capacity of each state and each community to prepare citizens for permanent jobs in the private sector. Especially important is building the capacity to prepare skilled workers in depressed communities. Because vocational educators are the ones who train workers for occupations in which shortages are most pronounced, they should be especially concerned about alleviating skill shortages through customized training, adult education, and apprenticeship programs. When forming a national employment and training policy, government and industry planners should consider the following needs areas: keeping vocational programs current with changing industry requirements, organizing an adult employment and training service, and developing emergency defense and economic revitalization training programs. (MN)