This document is designed to help state directors/coordinators become more knowledgeable about needs assessment in career education, particularly in reference to States' application for Federal assistance. The following topics are discussed in separate sections: What needs assessment is; who should be included in a needs assessment of career education (students, parents, educators, employers and employees, government agencies, and association personnel); what variables should be included in a needs assessment effort; how a needs assessment effort might be conducted (This section discusses separately the three phases of a needs assessment--planning, implementation, and utilization); examples of needs assessment efforts presently available; areas for future development; and a bibliography of needs assessment materials. (TA)