Profound changes are occurring in technology, work, and work organization with equally profound implications for the future role of vocational education and training (VET) in Australia. The changes have the following six interrelated elements that tend to affect one another. (1) globalization is creating a more internationalized economy and culture; (2) international competition is driving an accelerated rate of technological change in information and communications; (3) technology is associated with a sharp drop in skilled blue-collar work, a sharp rise in skilled and semi-skilled white-collar work, and no increase in jobs overall; (4) organizational change is immense but uneven, in that the post-Fordist vision of flatter structures, loose networks, and stimulating work is not occurring, although workplaces based on high participation, strong teams, and integrated, multiskilled jobs make productivity gains; (5) non-standard work and flexible hours have sharply increased; and (6) there is a growing polarization in income, in access to work and work security, and to technologies. The key elements in the future role of VET are its capacity to integrate more closely with the workplace and to integrate into the innovation cycle; on-the-job training is the aspect that has been underestimated so far. (An appendix contains 91 references. An 86-item annotated bibliography is attached, with a list of 213 other materials included in the study.) (YLB)