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In the Australian context the impact of moving from a provider-led and educationally focused system to an industry-led market focused system has been generally positive. Providers now have a better understanding of the needs of their clients, have learned how to build closer relationships with local industries and are more able to offer vocational education and training (VET) in workplaces and the community. However there have been a number of significant changes in the labour market. New patterns of employment, new kinds of work and work organisations have appeared and new ideas concerning skill, knowledge and learning have raised new questions concerning the operation of VET. This paper draws together what is known about these changes and outlines the findings of a project that explored these issues in the context of VET, 'An industry-led system: issues for policy, practice and practitioners: report 7 - integrating report', indexed at TD/TNC 72.547. The study found that VET providers increasingly operate within a world of difference created by the varying needs, expectations and priorities of industries, enterprises, local employers and learners as well as differences between national, regional and local training needs and finally variations in the goals and purposes set for the Australian VET system. The study also found that the promotion of an industry-led VET system has produced significant gains for Australian VET. However, increasingly local/regional relationships based on partnership and collaboration are central elements in VET program planning and delivery and social policy objectives remain important elements in VET provision.