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This paper sets out the labour market challenges and opportunities facing Scotland and invites organisations and individuals to respond and assist the Scottish Office in the development of a skills strategy (a summary of these responses was published in 2001 and is indexed at TD/TNC 71.585). It focuses on the existing workforce and is particularly concerned with the labour market and issues associated with skill demand and supply. It outlines a Skills Strategy Action Plan describing the key measures planned by government to improve the overall level of skills in Scotland. The role of government is that of facilitator, ensuring that people receive a basic educational grounding before entering the labour market, creating the frameworks for education and qualifications, and providing support in addressing market failures. The plan proposes measures to address five main areas: (a) meeting the market need for skills training; (2) developing employability; (3) meeting the market need for high quality labour market information; (4) assisting individuals and business adapt to economic change; and (5) monitoring and evaluating the impact of the strategy.