This report continues the California Postsecondary Education Commission's ongoing examination of the nexus between postsecondary education and workforce development, focusing on the projected needs for skills and knowledge in a 21st century global economy. This is the second in a series of policy briefs developed for that project. The first brief provided an overview of the historical context surrounding the issue. This brief examines more deeply California's workforce needs in coming decades, and considers the skills that employers and economists see as vital to California's workforce. The next brief in the series will examine what the various segments in the postsecondary system are currently doing to address workforce needs. A fourth and final brief will draw the issues together and offer policy recommendations for state policymakers to help assure that our postsecondary education institutions are able to fulfill their respective roles in workforce development. The appendix contains: CPEC Employer's Survey for Postsecondary Education and Workforce Development Nexus Study, October 2006. (Contains 3 displays.).