Important changes are taking place in the U.S. labor market. The economy has performed solidly over the last several years; the labor market has experienced robust job growth. A strong labor market benefits different segments of the population. Unemployment rates for those with less than a high school diploma fell by the largest amount between 1992-97. Changes in job growth indicate a high degree of churning in the labor market with large numbers of jobs being simultaneously created and eliminated. Despite low rates of unemployment and tight labor markets, unemployment duration remains stubbornly high, which might reflect a growing mismatch between the skills needed in the marketplace and the skills of unemployed people. Job growth has been concentrated in those industry-occupation sectors paying above-average wages. The types of jobs that will grow the fastest in the future will be those requiring more and more education and training. Bureau of Labor Statistics projections suggest that employment in high-knowledge worker content industries will grow twice as fast as employment in low-knowledge worker content industries. A growing consensus is that in the new knowledge-based economy, organizations will gain the competitive edge by being able to learn faster than their competitors. What will count is an organization's ability to attract and retain knowledge workers, improve their capabilities, and provide the environment for rapid and continuous learning and innovation. (Contains eight charts and graphs.) (YLB)