This bulletin describes the changing nature of work and summarizes research that has sought to identify the skills that all high school graduates and adult learners should have. It challenges several common assumptions about what preparation is needed for the workplace and how effectively schools are delivering the necessary skills. It cites the fast-paced changes in job skill requirements, notes that unskilled workers will become unemployable by the 21st century, and examines the move toward automation in various service and technical sectors. The need to restructure classroom instruction to compete in the global economy is cited, and results of the Career Preparation Validation Study conducted by New York State Board of Regents are presented. This study sought to verify the skill levels needed to perform various jobs which do not require a 4-year college degree, in order to establish a closer link between work force requirements and education. Bar graphs show the percent of entry-level workers whose jobs require them to perform at various competency levels in language arts, mathematics, and expanded basic skills. Policy questions to consider in shaping the direction of curriculum and assessment reform are discussed, including: (1) Is the school-to-work transition initiative intended for all students or a portion of the student population? (2) Should schools address the total array of skills, knowledge, and behaviors needed in the workplace or just a portion of these skills? (3) Are present curricula disciplines and programs to serve as the foundation for curriculum and assessment reform or will the discussion begin with a clean slate? and (4) How is the need to prepare youth for the world of work balanced with preparing them for other adult roles? The paper discusses changes that will be required in assessment as curricula change to include higher level skills and expanded basic skills. The paper concludes by suggesting that traditional curricula and assessment methods be abandoned and a new educational model be created to prepare students for the 1990s and beyond. (JDD)