This paper reports on a study that examined factors which had a direct impact on the quality of graduates from the Public Authority of Applied Education and Training (PAAE&T) in Kuwait. The study also examined the extent to which the graduates met the requirements of local employers. It consisted of a review of the literature; a questionnaire given to a sample of students in selected departments; interviews with department heads at the PAAE&T; Deans of related colleges and institutions; Deans of industrial liaison offices in the selected sample of the PAAE&T; supervisors in industry who had direct contact with prospective PAAE&T graduates; and employed graduates. The findings indicate that there is a need to develop a proper labour strategy to ensure that graduates from PAAE&T are equipped with the required knowledge, skills and attitudes to meet industry and business requirements. (Contains 6 tables and 1 note.)