This booklet reports on issues related to an inquiry to examine the effectiveness of Australian schools in preparing young people for the world of work, with special attention to the schools' achievement in providing youth with an adequate mastery of fundamentals. First, the evidence of an educational inadequacy is examined. Inquiry is made into unemployment; the viewpoint of employers, postsecondary education groups, and schools; and 20-25 percent of school leavers who have inadequate levels of literacy and numeracy. Evidence of current difficulties in the teaching professions is then examined under two broad headings: issues related to practicing classroom teachers and their teaching environment and preliminary factors associated with preservice and trainee teacher selection procedures in teacher training institutions. Various initiatives are proposed to improve the general level of teaching proficiency. Finally, a number of initiatives are reviewed that are necessary in order that education and the school structure may evolve to meet requirements of contemporary society. These include a core curriculum, involvement of parents and influence of home environment, greater emphasis on career guidance and student counseling, restructuring the secondary school system, and a practical orientation for educational research. (YLB)