In this paper the role of human resources during the transition of the Slovenian economy is analysed in the following five sections. After a very short introduction, the second section discusses the supply aspect of the human resources, including the support of statistical data, past and future demographic development, ageing of the population, and decrease in the number of young people entering the labor market. In addition, the main characteristics of the socialist/communist system and its negative influence on the economy and educational institutions is examined. The results of industrys requirements and socialist pressures to limit adaptation of social science curricula and other in a rapidly developing world, will also be explored. The third section is devoted to the demand for human resources and the consequences of demand for increased numbers of employees without regard for their quality of skills and educational level, and the results of a preference of Slovenian companies to exchange their products mainly with less demanding markets in former Yugoslavia, Eastern Europe and the Middle East. Explored further are the fall of GDP and huge raise in unemployment beginning in 1991 and the structural mismatch of human resources supply and demand as the main obstacle to Slovenias successful response to the rapidly developing markets of the world. Discussed in the forth section are future developments in supply and demand of human resources, mainly the influence of new technology', the growing importance of the service sector, and the new requirements in education and skills for the labor force. In addition, what the consequences of changing the habits and attitudes of young people to avoid skills shortage in the future will be for government, companies, education institutions and individuals will also be discussed.