Background: The expansion of user-friendly mental health services for young people is an important goal of mental health reform in Australia; however, stigma and discrimination associated with mental health conditions constitute major deterrents to help-seeking among young people. Objective: This paper reports on a qualitative study conducted in South East Queensland, which explored perceptions concerning employment barriers and support needs of people living with psychosis. Method: Focus groups and interviews were conducted with 137 participants comprising community members, employers, clients, carers, employment consultants and health professionals. Results: Stigma and discrimination were identified as major employment barriers for people living with psychosis. The formal education system was seen as a key means to overcome stigma and discrimination through improved awareness and understanding of mental health problems. Conclusion: This paper highlights participants' views on how the formal education system might be adapted to increase public awareness and understanding of psychosis and reduce community stigma and discrimination.