This guide provides an introduction to competency-based employment and training under the Job Training Partnership Act (JTPA). The guide describes in general terms the steps service delivery areas should take to implement competency-based employment and training systems for youth. The content is based on the experiences of practitioners, and it is intended as a working introduction to major issues in the design, operation, and management of competency-based programs. The guide is organized in four parts. The first part provides background information on JTPA legislation and regulations, the concept of competency-based employability development for youth, advantages of a competency-based approach, and roles and responsibilities. The second part of the guide introduces the elements of competency-based employment and training. This section describes general tasks and specific duties, such as determining local employer standards, developing indicators and benchmarks, assessing and measuring competencies, focusing program opportunities on competency attainment, and recording ongoing competency attainment. The third part of the document focuses on implementation issues, while the fourth part summarizes the whole program process. Appendixes to the guide include a sample competency-based system and an annotated resource guide containing assessment instruments, publishers' addresses, and a bibliography. (KC)