High schools have responded to the poor labor market primarily by encouraging college-for-all policies, leading the majority of seniors to plan to get college degrees, even those who perform poorly. School policies focus too narrowly on academic achievement, overlooking soft skills like motivation, dependability, attention to quality, and social interaction. Educational policies also fail to give students a clear understanding of incentives for mastery of both academic and soft skills. Other nations like Germany and Japan provide clearer incentives for achievement that Americans could use as policy models. Labor market entry policies can be improved by making achievement relevant to goals. Improved student contacts with colleges and employers can clarify incentives for achievement. These two reforms are promising: (1) tech prep programs that teach students about college and occupational demands and allow a seamless college transition, and (2) youth apprenticeship and cooperative learning programs that give work experiences students need to improve chances for labor market success. Policies to improve graduates' readiness for college or employment are the following: colleges involved in tech prep could adopt standardized tests of college readiness; high schools could provide employers with better signals of soft skills; and high schools could build more trustworthy employer relationships. (YLB)