The vocational education system was started in the United States by a collaborative effort of employers, educators, and unions. If vocational education is to meet the critical skill needs of industry, Federal policies providing for broader governance and an incremental approach to the planning and delivery of vocational education programs are necessary. Rather than relying on government corrective action to adjust curricula after skill needs have already changed, vocational education planners need to build adjustments to changing technology and labor markets into the system. Federal vocational education policy must encourage States and local school districts to deal with all elements of the school-to-work transition, including job placement, job search education, and employment assistance services. When planning for the delivery of occupational education to adult learners, Federal policymakers need to focus on efforts to assist adults in making occupational adjustments and to aid employers in upgrading their labor force. It is imperative that Federal policymakers take steps to meet national skill shortages, promote entrepreneurship, and integrate the multitude of Federal human resource development efforts currently underway. (MN)