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Up until the 1990s, the Austrian education system was developing successfully, as evidenced by labour market transitions, particularly among young adults. However, the education system began experiencing problems in the 1990s with increasing evidence of transition problems emerging, both at the end of compulsory education and at post-secondary level. The number of apprenticeship positions dropped by 20% in the 1990s, blocking the transition route for the most vulnerable members of society. This article provides an overview of existing problems in vocational and university training and the reforms introduced so far.