Countries in all regions of the developing world are asking for advice and support on how to make their labor force more employable and productive. Skills development is part of the answer. Finding the right answer requires a clear identification of skills gaps and entry points to build them—from investments in foundational skills early in life to technical skills acquired on-the job. Labor market institutions and policies create incentives that influence both supply and demand for skills. Policies for skills development must consider carefully the right role for the state— one that responds both to market and government failures. This brief reviews key messages emerging from recent World Bank flagship studies.