Basic principles for the establishment of a comprehensive youth education and employment system are offered in this guide, with particular focus on those youth who are at greatest risk of becoming or remaining chronically unemployed. Drawing on the knowledge generated by research and operational experience over the past decade, the guide proposes a system of services that incorporates programs for at-risk youth who are at very different stages of development. Seven strategies are presented: compensatory education, alternative schooling, integrated work/study, residential education and training, job-readiness training, on-the-job training, and skills training. Each strategy is described and information is given about its target, rationale, key elements, and costs. Examples of each kind of strategy are listed. Following the strategy section, a number of steps to improve the coordination and delivery of education and training services are suggested. Four appendices contain information on existing programs and resources: (1) descriptions of model programs, with their administrative structure, approximate costs, and contact persons; (2) the outline of a procedure for estimating the size of the at-risk population and suggested sources for necessary data; (3) a table of information on Federal sources of funding for services to at-risk youth; and (4) a list of organizations and publications that practitioners may wish to utilize. (CMG)