The responsiveness of young people and postsecondary institutions to changes in the demand for workers in different occupations was examined. The skills that 16- to 24-year-old youth generated in the 1980-1981 year were estimated, along with the postsecondary awards and degrees that this age group would earn between 1984 and 1995. Skill projections were derived from the amounts of education completed and the fields of study. The quality of skills of high school graduates was also analyzed, based on comparisons of the 1972 and 1980 graduating classes. Four types of data were assessed to determine whether youth show the flexibility required to respond to skill shortages and oversupplies: intended fields of study, the levels and fields of completed degrees, and rates of occupational and geographic mobility. Five characteristics of the postsecondary system that seem to facilitate its adaptiveness were identified: the number of different institutions and sectors, substitution between them, heterogeneity among them, student geographic mobility, and the internal organization of the institutions in major sectors of the system. Problems that affect the educational system's ability to respond to changes in training requirements were identified, along with policy issues. Statistical findings are included. (SW)