This is the second of a 2-volume final report of a 20-month research and development project conducted by the Michigan State Employment Service agency and a private research firm. The purpose of the project was to design and test innovative methods for increasing the volume and quality of jobs listed with the employment service. Included are: (1) a discussion of the major issues confronting local offices in their efforts to redirect their efforts to increase placements, and (2) descriptions of key components of the project's demonstration model, such as staff development activities, office operation and public relation activities, employer information, job development information, employer contact selection, and the delivery of employer services. Volume 1 of the report is available as VT 020 344 in this issue. (Author/SN)