This study provides a background analysis of the current situation in the Slovak Republic in terms of employment, employment policy institutions, and employment policy delivery mechanisms, with special attention to their preparedness for meaningful participation in the European Union (EU) employment coordination process. The study was based primarily on statistics provided mainly by the Slovak Statistical Office, the Ministry of Labour, Social Affairs and Family, and the National Labour Office. The study found that Slovakia has been one of the most successful among the countries undergoing transformation, with an annual growth rate of 7 percent. However, since 1998, the government has made major cuts in public spending, taxes have risen, prices have risen, unemployment has grown, and employment has fallen. The demographic situation is favorable, however, with strong growth in the numbers of young adults. Almost all the population is educated, and many are participating in higher education or vocational training. A variety of labor market policies is set by the government. (The report also contains six appendixes that contain statistical and regulatory data and 82 references.) (KC)