These 19 papers from the second annual Policy Forum on Employability Development explore the responsiveness of various educational and training institutions to changing labor market demands. The first three papers provide an overview of the forum. They summarize the proceedings and policy considerations and address how vocational education and training can be responsive to change. The next four papers focus on occupational projections. Specific topics are accuracy and utilization of occupational forecasts, labor market models for college-trained workers, and reactor comments on occupational forecasting and projections. The third section on early warning systems contains four papers that address preparation of staffing requirements data at the micro- or plant level, a descriptive survey of the employment effects of the defense budget, and reactor comments on these two presentations. Seven papers deal with state and local adjustments to changing labor market demands, specifically the states' human resource development role, local coordination and linking efforts among employment and training programs, vocational education's response to skilled industrial worker shortaqes, factors influencing vocational education program decisions, and two papers with reactor comments. A paper on the experiences of other countries in responding to changes in the demand for skilled workers and reactor comments conclude the volume. (YLB)