The aim of this study was to provide the Commission in view of the approaching end of the 2010 Lisbon agenda with an assessment of the employment challenges of the next decade. The study looked in particular at the policy challenges but also included governance challenges. An additional task was, however, to identify possible changes in the employment policy process; including guidelines and target, at the level of the EU. The study took as the point of departure the current integrated employment guidelines and agreed targets and benchmarks, which represent the present priorities within the employment field. The study also provided thoughts on the possible need to adjust the employment guidelines to reflect the future challenges of the European labour markets. The analysis was carried out on an aggregated European level but with case studies for selected countries. The study the identified reforms and policy measures with a potential significance for Europe to ensure growth and jobs in the medium term.