The human capital emphasis in recent economic planning is leading to new pressures on the post-compulsory education sector where work-readiness is emerging as a major focus. With concerns about the impact of demographic change as the population ages, there is a renewed emphasis on greater productivity from and less wastage of human capital. Hence retention of young people in the education and training system to at least Year 12 and the development of explicit vocational pathways has become an urgent priority for educators to address. The dilemma is that uncertainties in the future nature and demands of work have to be addressed here and now, while the lead time and costs to produce work ready students is increasing. This paper considers the characteristics of early school leavers in NSW and the strategies developed in that State to re-engage such students in the education system to increase their opportunities for workforce participation. (Contains 5 tables.)