This paper assesses the youth employment situation from a policymaking perspective. The first of three main sections provides a largely statistical overview of the current youth labor market. The 1980s recession is said to be a depression for youth, especially minority youth. Increases in teenage unemployment are documented, and asserted to be the worst in American history. Some causes, such as the minimum wage cut and new government policies, are considered, and prospects for the future are presented. Some favorable demographic trends are observed, but these, it is pointed out, will not neccessarily solve the problems of youth who lack basic skills and academic credentials. The second section makes proposals for programs based on research and experimentation conducted in the 1970s. These emphasize the interdependency of education and job marketability and call for: (1) assistance beyond basic skills remediation; (2) a more measured expansion of youth programs; and (3) a greater balance among service providers (as to target groups and areas, treatment approaches, and delivery systems). Suggestions are made for establishing standards, creating opportunities and service pyramids, and documenting youth competencies and employer requirements. The third and final section advances a youth strategy for the 1980s that would have three basic thrusts toward (1) the provision of basic skills training; (2) the creation of a national youth service through the implementation of a balanced portfolio of job creation measures; and (3) frameworking the youth labor market through the development of a generally accepted certification of entry employment competency. (KH)