The pace of globalization and technological change provides both challenges and opportunities at a time when the global employment situation remains grim and levels of open unemployment and underemployment remain high in most countries. This text reviews the global employment situation and examines how countries in different circumstances and stages of development can develop the best training strategy and flexible and responsive training systems to address these far-reaching changes. The report presents a close analysis of training systems worldwide and an examination of training strategies for increasing national competitiveness, improving the efficiency of enterprises and promoting women's employment opportunities and enhancing the skills and employability of informal sector. The report suggests specific policy reforms for making training more efficient and effective. Given the rapid and continuous pace of change in the demand for new skills, the report concludes that training and lifelong learning need to be given the highest priority.