ln a rapidly changing environment early identification of skill needs is becoming increasingly challenging. The pace of technological change and innovation entails demands for new skills and competences on the labour market. Availability of reliable and accurate information on skill trends is a precondition for a timely response to new and changing training and education needs. This publication highlights some challenges and solutions for early identification of skill needs and analyses results, their relevance and transfer to policy and practice. It gives some examples of good practice in identifying, anticipating and monitoring changing and emerging skill needs at national, sectoral and regional levels, and for specific target groups. The publication is based on proceedings of the international conference organised during the Greek Presidency in May 2003 in Thessaloniki. It continues the debate begun in the first publication 'Early identification of skill needs in Europe', Cedefop, BMBF, 2003.