The ongoing erosion of human capital in Israel and the Galilee poses a challenge for sustainable development. If significant changes are not made in the human capital development system, by 2020 a significant number of new workers will enter the labour force without relevant skills which limits their contribution to economic development. Israel will need to raise the level of educational attainment across different population groups in the Galilee. In order to help adjustments to changes in the labour market it will need to enhance the flexibility of the population through skills diversification, vocational training and enhanced access to Life Long Learning opportunities.