A study compared the effectiveness and cost of the New York Department of Labor's (NYDOL) major programs with those aspects of similar programs operated by the other 49 states, District of Columbia, and Puerto Rico. It reviewed NYDOL records, interviewed NYDOL managers, analyzed data from the U.S. DOL, and contacted officials in some other states. Findings indicated that the referral and placement rates for New York's Job Service program were lower than the rates in most other states. During the five program years ended in 1991, the performance of New York's Job Service program declined in comparison to the rest of the country. New York's referral and placement rates were lower than the rates of other states with high cost Job Service programs and higher unemployment rates. Staff productivity, in terms of placements, declined during this period. New York's Job Service program served far fewer unemployment insurance recipients than programs in California and Texas. New Yorkers tended to stay on unemployment insurance for longer periods of time than individuals in California and Texas and the nation as a whole. A review of federal data relating to other employment service programs, such as veterans' employment programs, dislocated workers programs, and summer youth programs, showed that, in some cases, the cost of New York's programs appeared inconsistent with the cost of the programs in the other states. (Appendixes include comments of NYDOL officials and State Comptroller's Notes.) (YLB)