The responses to a 1999 study of Australian employers and an examination of skill shortages by Australia's Department for Employment, Work Relations, and Small Business were analyzed to identify issues affecting skill demand and supply in Australia's education and training sector. The following were among the key findings: (1) in recent years, the demand for skills has been influenced by the growth in part-time and casual employment; (2) labor market changes have led to increased demands for higher-level skills; (3) the level of educational attainment influences the likelihood of gaining employment and associated earnings; (4) completing senior secondary school or acquiring a basic vocational qualification is no longer adequate preparation for lifetime employment; (5) completing postsecondary education and training qualifications generally delivers good employment outcomes; (6) although growth across postcompulsory education and training has varied, vocational education and training participation levels have risen steadily in recent years; (7) future growth in students in postsecondary education and training will become increasingly reliant on older people commencing or returning to some form of education and training; and (8) Australia has relatively high levels of postsecondary education participation compared with the Organisation for Economic Cooperation and Development average, especially among older people. (MN)