The vocational education and training (VET) system of the Former Yugoslav Republic of Macedonia was studied by two consultants who visited the country and held discussions with senior officials from selected government ministries, universities, trade unions, and vocational schools. The study focused on the following: Macedonia's socioeconomic and labor market situations; the structure, administration, and financing of preschool, elementary, secondary, postsecondary, and adult education and training; and international assistance to VET. Case studies of vocational schools in five cities were also conducted. It was concluded that, in view of the significant changes under way in Macedonia's socioeconomic structure and labor market, the country's VET system must progressively reduce the proportion of resources allocated to acquisition of specialized vocational skills and expand the level of resources devoted to teaching transferable core skills. (The report 20 references and 10 tables. Appended are the following: current/proposed groupings and profiles; existing gymnasium curriculum; proposed teaching plan framework for gymnasium education; existing health curriculum; existing electrical and technical curriculum; proposed teaching plan frameworks for 3-year and 4-year VET; facilities of universities in Skopje and Bitola; and plans to establish a European Union national observatory in Macedonia.) (MN)