This overview paper highlights implications of keynote papers and discussion at the first National Issues Forum held by the Research Center for Vocational Education and Training (VET) in Australia. It discusses evidence that the school-to-work (STW) transition is a problem for an increasing number of young people and why. It outlines the government's range of responses to help young people, including greatly increased public funding for VET. However, evidence is presented that shows VET providers have failed to attract an increasing proportion of young people, shown by the decline in young people's participation in VET. Reasons for the decline include: changing patterns of demand for skills; and changing youth attitudes and competition from adults for access to training. Recent survey results are presented on employment and earnings outcomes achieved by young people who use a VET course to prepare them for employment. The paper suggests that VET's traditional strengths--its institutional base and vocational focus--may also be its greatest weaknesses in the future. Evidence is presented that countries with similar training arrangements (apprenticeship system and well-defined occupational structures of the industrial award system) are making major changes to how their structured education STW pathways work. The paper concludes by exploring types of changes VET needs to make. A case is made for VET providers to undertake continuous reassessment of how well they are currently meeting needs of potential students. (YLB)