The paper is based on results of research from completed project on guidelines of competence - based standards for VET of pedagogues at higher education institutions. The project consisted of nine research studies. Research question: What acquired professional competencies by pedagogues-graduates at higher education institutions could warrant compatibility with the needs of labor market needs?Objective: The gap between employers' expectations and pedagogues'-graduates' capacities to realize in practice the acquired professional competencies.Purpose: To evaluate and highlight the challenges and obstacles as premises for the gap between existing, functioning of existing VET of pedagogues and needs of labor market. Value: (1) evaluated, compared the compatibility between professional standards of VET of pedagogues with the focus on professional competencies in Lithuania and other EU countries; (2) prepared the list of professional competencies and guidelines for establishment of professional standard for pedagogue in VET; (3) compared the models of pedagogic practice in EU countries with the prpojection to Lithuania; (4) evaluated the specificity of capacities of pedagogues-graduates to apply the acquired competencies in practical contexts.Theoretical framework consists of learning paradigm (Bowden, Marton, 1998; Longworth, 1999; Laurillard, 2000); constructivist approach (Gough, 1997; Ahlberg, Dillon, 1999; De Corte, 2001); concept of competence (Barnett, 1994; Gonczi, 1999; Trotter, Ellison, 2001; Westera, 2001); concept of work (White, 1997; Barnett, 1999; Casey, 1999; Bills, 2004).Methods: documentary research; comparative analysis; qualitative content analysis; questioning survey; evaluative research; descriptive and inferential statistics (SPSS 12.0). Samples: (1) 20 standards of VET of pedagogues; (2) 200 lecturers; (3) 540 students involved in VET of pedagogues; (4) 100 diploma papers prepared by pedagogues-graduates.Instruments: 2 evaluational matrixes; 2 closed - ended questionnaires.Employers mentioned 21 professional competencies that represent four directions and are expected and needed by pedagogues-graduates to apply in practice:o Social, connected to contacting with schoolchildren, their parents and colleagues-pedagogues; communication by presenting the self at organization; formal communication with others by perceiving the innovations; adaptation in various contexts; ethical decision-making; endeavour to be empathic and psychological readiness; integration of innovative ethical, managerial and personal aspects in communication.o Functional, oriented to application of pedagogical techniques in pedagogical practice; reflecting in order to evaluate the self objectively. o Cognitive, connected to IT application; integration of acquired knowledge and techniques that require knowledge and skills in administration and management.o Ethical, which needs to be based on research methodology and psychological competencies. As outcomes of the research are formed the guidelines for (1) development of organization, quality management and monitoring in VET of pedagogues; organization of pedagogical practice; cognitive, functional, personal, ethical competencies in VET of pedagogues as premise to reduce the gap between expectations of labor market and graduates' capabilities to function in practical contexts effectively.Barnett, R. Learning to work and working to learn. In: Understanding Learning at work. D. Band & J. Garrick (eds.). London & New York: Routledge, 1999, 29-44. Barnett, R. The Limits of Competence: Knowledge, Higher Education and Society. Buckingham, UK: Open University Press, 1994.Bills, D. The Sociology of Education and Work. Blackwell Publishing, UK, 2004.Bowden, J.; Marton, F. The University of Learning. Kogan Page, London, Stirling, 1998.Casey, C. The Changing Contexts of work. In: Understanding Learning at work. D.Band & J.Garrick (eds.). London & New York: Routledge, 1999, 15-28. Gonczi, A. Competency - based learning: a dubious past - an assured future? In: Understanding Learning at work. D.Band & J.Garrick (eds.). London & New York: Routledge, 1999, 180- 96. Trotter, A.; Ellison, L. (2001). Understanding competence and competency. In School Leadership for the 21st Century. A competency and knowledge approach. B. Davies & L. Ellison (eds.). London & New York: Routledge Falmer, Taylor & Francis Group, 2001, 36-53. Westera, W. Competences in education: a confusion of tongues. Journal of Curriculum studies, 2001, 1 (33), 75-88. White, J. Education and the end of work: a new philosophy for work and learning. London: Cassel, 1997 National journal includeed in international databases.