This policy analysis paper describes the alternative actions available at the federal policymaking level to enhance youth employment using one institutional mechanism: vocational education. The first section on source and background of the youth employment problem provides a context within which to view the policy problem being addressed. The second section focuses on what is known about the consequences of youth employment problems, specifically the private and social costs. Next, the policy analysis addresses possible causes of the above consequences as a target for action by vocational education. The fourth section moves from problem diagnosis to prescriptions and discusses what services would comprise a comprehensive policy to address youth employment. Services are linked to causes, and specific roles for voational education are suggested. The lessons of past experience with vocational education and other employment- and training-related policies are analyzed to assess the likely effectiveness of various services. Next, current youth employment policy is briefly summarized to examine which services are being provided and what limitations in quantity and quality to service might exist. The last section addresses policy alternatives specifically with recommendations to federal policymakers for enhancing the role of vocational education in improving youth employment. (YLB)