Using current national data, this report describes emerging labor force and employment trends among industries and occupations expected to experience the fastest rates of growth or decline by the year 2000. In addition, the report analyzes the challenges and opportunities for higher education arising from a developing technological base accompanied by an increasing demand for a better educated and more highly skilled workforce. Section I discusses the impact of technological change and international competition on the labor force, the global economy, organizational structures, and the worksite. The discussion indicates that technological changes in the work place can either increase or downgrade the skill levels required of workers, depending upon the occupation. As a result, a dichotomy is emerging between a growing number of new jobs requiring increasing levels of education and skills, and a large group of low-paying jobs requiring minimal skills. Section II reviews national and, when available, statewide demographic and literacy trends and patterns as they relate to the workforce. The section describes a slow growing and aging workforce; the entry of an increasing number of women, minorities, and immigrants into the labor force; and the adverse influence of illiteracy on the labor market and economy. Highlighted problems include a workforce that is shrinking and less willing to change, a shortage of teachers, increasing needs for day care, and the need to ensure basic literacy among all Americans and immigrants. Section III addresses the changes which must be made at state and institutional levels so that higher education in Missouri can meet job retraining and skill upgrading requirements. The report includes appendixes which list industrial and occupational classifications, an analysis of manpower demand by type of industry, employment trends by occupation and their relationship to educational levels, and 32 references. (VVC)