In rethinking its policy with regard to involvement in the vocational education enterprise, the federal government must consider traditional educational goals as well as recent social, economic, and demographic changes. If the idea of vocational education as part of the public school system is going to work, it is necessary to make vocational education a collaborative effort among education, employer, and organized labor institutions. Also needed is a policy of recognition of the educational objectives of the vocational education approach, rather than the present fixed focus on immediate placement outcomes. Policymakers should move toward joint school-employer occupational instruction, with the burden of proof shifting to the states to justify a solely public classroom approach. Rather than relying on government corrective actions to adjust curricula to changing labor needs, educators should build adjustments to changing technology and markets into the system. Also necessary are programs to facilitate the school to work transition, including job placement, job search education, and employment assistance as well as programs to facilitate occupational adjustments and help employers upgrade their labor force. Included among other national imperatives to be considered are meeting skill shortages, promoting entrepreneurship, and integrating federal human resource development efforts. (MN)