This study explores the correlation between school reform and national economic performance by examining employer needs to fill entry-level positions in the workforce. A widely held assumption contends that the performance of the schools in preparing educated workers bears directly on the development of a productive and efficient economy. This study evaluates available relevant research. An introduction reviews the association between education and the world of work. The first section, "The Needs of Employers for New Employees," describes growing concern about the adequacy of entry workers. The second section, "Representative Studies of Employer Needs," summarizes 14 recent studies, including sampling strategies, substantive focus, and major findings. The third section,"Dimensions of Studies," discusses six key variables that influence interpretation of the findings. The fourth section, "Deficiencies of the Studies," finds significant weaknesses in the studies' interpretative value. The fifth section, "Interpreting the Results of Studies of Employer Needs," describes the following perspectives involved in hiring decisions: (1) technical; (2) control; (3) institutional; and (4) political. A concluding section finds the linkage among employer needs, school reform, and economic development to be unclear, based on current evidence. A list of 27 references is appended. (AF)