In New Zealand, secondary schools, polytechnics, and universities are the main educational institutions undertaking further education and training of the labor force. In recent years, the two major strands--trades and technical education and general academic studies at the university--have gradually been supplemented by a range of transitional education and labor market training programs. A more varied pattern of provision has evolved with separate arrangements for funding and certification and different accountability structures for training providers. Pressures for the reform of the postcompulsory education and training system need to be understood within the context of changes in New Zealand related to economic and structural changes, technological changes, changes in the work force, unemployment, and a more complex transition from school to work. Reform of the current system has been advocated on a number of grounds, such as the quantity and quality of training, problems of access and equity, and administration and funding of further education and training. The concept of a "market" for further education and training can be defined by examining the factors that influence the supply and demand for training and the factors that are likely to influence the investment decision by individuals and firms. The government has a role in the funding and certification. (Appendixes include 11 pages of data tables and a list of 13 references.) (YLB)