Sweden has worked in the last decade to strengthen the connection between education and employment, but still needs to make futher improvements. Recent shifts in the country's labor markets led to more youth unemployment, the displacement of less-educated workers by the more highly educated, and greater problems in the transition from school to work. The Swedish government has addressed these problems through educational reforms and increased educational planning. The planning process, which is performed at the national, regional, and local levels, has been complicated by discrepancies between the plans on the one hand and demand for particular courses and labor market behavior on the other. The educational reforms added vocational orientations to most courses of study at both the upper secondary and higher education levels. They also enlarged the opportunities and funding for recurrent education and broadened citizens' participation in educational decision-making. Because youth employment problems continue, however, futher reforms are needed to increase financial assistance and to improve higher education and upper secondary schooling. (RW)