A project was conducted to improve the state of Washington's community and technical college system by developing and using an improved occupational forecasting system to assess and respond to education and training needs. First, long-term occupational forecast data from Washington's Employment Security Department were matched with technical and community college program completion numbers to identify occupations where employer-identified labor needs were not being met or where oversupplies of workers existed. Next, the assessment results were verified through extensive employer interviews focusing on occupational demand, wages, skill requirements, hiring processes, and preferred forms of education/training. The forecasting system was used to assess labor needs in the following occupational areas: information technology; human services; purchasing and logistics management; automotive technicians; machine trades; and agriculture/agribusiness. The following were among the recommendations issued: (1) have college staff conduct regular labor market analyses; (2) develop more flexible service delivery systems; and (3) make a state-level policy commitment to direct colleges to respond to evidence of excess supply or demand by modifying the number of slots in particular programs. (The occupational assessment interview guide is appended, along with the labor market assessment reports for the fields of automotive technology and purchasing and logistics management technology.) (MN)