As part of its National Skills Development Strategy, the Department of Labour commissioned this research project to investigate the feasibility of developing forecasting models and tools, in order to help identify future skill needs in South Africa. The first phase of the project involved two main elements: 1. A review of international best practice, including an assessment of the strengths and weaknesses of different approaches; 2. A review of existing data and previous approaches to this topic in South Africa. In conjunction, these two elements allow an assessment of both what is desirable and feasible in a South African context. The report concludes with some detailed recommendations regarding a methodology for future skills forecasting in South Africa.