The two papers in this newsletter focus on youth employment and training programs in the United States and the government response to unemployment in Australia. In the first paper, "Looking at Other Countries, No. 1: United States. Youth Employment and Training Programs during the First Two Years of the Reagan Administration" by Ralph E. Smith, some developments in the United States are reported that might be relevant to Australians interested in programs to ease the transition of young people from school to work. Two programs are described--the activities authorized by the Comprehensive Employment and Training Act and the Targeted Jobs Tax Credit, a wage subsidy to stimulate the employment of economically disadvantaged youth. The second paper, "Review Paper No. 7. The Government Response to Unemployment: A Critical Review" by John Freeland, evaluates existing policies and programs for Australia's unemployed. The evaluative criteria to be applied are established, and the government response to unemployment, specifically the development of unemployment programs from 1972 to 1982, is then discussed. An evaluation of that government response falls into two parts. The first uses the accompanying tables and graphs to uncover underlying policy preferences, objectives, omissions, and discriminations. The second part looks more closely at specific programs and develops a series of recommendations for reform. Sixteen pages of tables and figures are appended. (YLB)