The present article is the result of content analysis of research documents and synthesis of findings of researches corresponding to technical and vocational education in Iran. To conduct this study, research reports conducted in the field of technical and vocational education as well as official documents of education and training in Iran were studied. To describe the current state of technical and vocational education in Iran, 97 research reports and official education documents were studied. To identify emerging labor market conditions and ways to confront the challenges corresponding to technical and vocational education, several international reports were studied. A systematic review method was used to analyze the information and messages contained in the documents. The findings show that the Iranian education system has not been able to overcome its chronic inability to train human resources familiar with the labor market. This weakness of the education system has been exacerbated by the emergence of technological developments and changing labor market needs, and the current approach to skill training in technical and vocational schools has faced a serious challenge. Technological developments in the field of artificial intelligence and automation lead to a decrease in the employment chances of graduates of formal technical and vocational education. A large part of the services related to the knowledge and skills acquired in technical and vocational schools can be performed by robots. For this reason, the continuation of the current technical and vocational education programs is not justifiable and it seems necessary to adopt a policy that is consistent with the emerging needs of the labor market. Therefore, in line with the innovation-based economy, it is suggested that Iran and other developing countries follow the policy of vocationalization the public education and technological training based on STEM. This prescription seems realistic for improving the quality of public education while reducing inequality of educational opportunities.