Under proposed legislation to replace the Comprehensive Employment and Training Act (CETA), business can be expected to assume an even greater involvement in job training programs at the state and local levels. How the private sector is adapting to its new role, particularly through the private industry council (PIC) system, is the subject of this ongoing research program. Information was gathered through selective analyses of Department of Labor national performance data on CETA programs; a review of outside CETA evaluations including the Continuous Longitudinal Manpower Survey, and the Center for Public/Private Ventures and Ohio State University evaluations of private sector initiative programs; and an indepth survey of 93 private industry councils. Preliminary evidence from these sources shows that PICs have made significant contributions to the program--even in their limited roles, to date. PICs have shown improved job placement rates, lower costs per placement; a higher quality of job placements, shown by long term job retention and wage gains; and improved linkage between the business community and local education, training, and economic development activities. At the same time, there is no evidence that improved performance has taken place at the expense of more disadvantaged clients. Finally, the evidence does not show a lack of business interest in employment and training but, rather, demonstrates an ability to take advantage of even limited opportunities to make a difference. (KC)