Competency-based employability is an instructional approach built around specific measurable skills, knowledge, and attitudes identified through job analyses. Three major competency areas defined by the U.S. Department of Labor are preemployment and work maturity, basic education, and job-specific skills. The guide outlines how to conduct job market studies and translate job duties into competency statements. Competency indicators and benchmarks (the quantity and quality of required work) are outlined in tabular form. Selecting assessment instruments and focusing program services and opportunities on competency attainment are discussed, and the importance of followup interviews with former students is emphasized. A glossary of terms, program descriptions, and lists of basic educational and job-specific skills are provided. Additional appended materials include annotated lists of preemployment, work maturity, and job-specific skills assessment instruments along with a list of publishers' addresses.