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The concept of pathways has been a powerful organising idea in Australian education and training over the past ten years. Two related trends have been affecting young people: a rapid decline in the number of full time jobs available to 15-19 year olds; and increasing education participation rates among 15-24 year olds. There is a growing recognition that a successful transition to work depends on having a sound foundation for further learning as well as having the skills that the labour market requires now. This paper attempts to provide an overview of the main features of education and training pathways in Australia and the policy challenges they give rise to.