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This paper suggests that there are two pivotal developments over the past two decades that have caused most of the changes affecting the workforce and the need for training. They are: (1) microprocessor technology and its impact on information, communication, production and work organisation; and (2) teams and groups as the new focus of work organisation and learning. The paper looks at the response of the German vocational training sector, suggesting that there should be: more flexibility of vocational education and training (VET); more interaction between education, training and work; more focus on new information and communications technology (ICT); new methods of learning; more work experience in relation with learning; more training for self-employment; and more modularising within a complete vocational basic qualification/competence.