U.S. competitiveness depends on higher worker productivity, greater technological investment, and streamlined organizational structure, which require a flexible, highly trained work force. The demand for educated workers continues to rise in industrialized societies, influenced by the demand for certain goods and services, decline in real labor costs, productivity as influenced by technology and workplace organization, and international competition, which is changing the skill requirements and composition of jobs. Research findings show that the average educational requirements of future jobs will not differ significantly from current jobs; technology has varying impacts on occupations; and a broad array of different types of skills may be necessary. Changes in the supply of educated labor are caused by increased numbers of women, minorities, and immigrants in the work force and the lack of educational preparation of many labor market entrants. There is a growing mismatch between the educational attainment of workers and job demands, resulting in both over- and undereducation. The nature of schools differs from the nature of the workplace, with a consequent imbalance between the types of skills taught and those needed by workers. Additional research is needed to provide adequate measures of skill needs and labor supply and demand. Policy makers should focus attention on achieving adequate education for disadvantaged groups, providing appropriate school experiences, determining appropriate roles for all types of educational providers, and effectively using educated workers. (81 references) (SK)