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This publication looks at a broad overview of issues affecting the demand for skills in Australia and the implications of current trends in training and education on future skill supply. With regard to demand, issues such as changes in skill levels and the nature of work are presented and the implications of a changing labour market are examined. The changing demographics of the workforce, the changes in occupational and industry profile and the changing educational requirements on skill demands are scrutinised. On the supply side, trends in postcompulsory education and training are presented. Various levels of participation in education and training are examined together with the demographic profile of participants, the training available and the outcomes achieved. The views of employers are briefly looked at. Finally, the potential impact of Australia’s ageing population on future levels of participation and general implications for the future of the education and training sector are considered.