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The subbaccalaureate labour market (SBLM), which the author defines as the market for individuals with less than a baccalaureate degree but at least a secondary school diploma, is a large and rapidly growing part of the labour force in the United States of America (USA). This chapter examines the SBLM in terms of its distinctive characteristics; how it operates for students and employers; and what the implications are for education and training programs. The author suggests that the SBLM in the USA provides a good example of a relatively free-market approach to the transition from school to work. The SBLM is analysed using interview-based case studies of occupations which have been affected by technological change, require certain specialised knowledge, and are well represented in most two-year colleges.