A comprehensive assessment of the literacy proficiencies of Job Training Partnership Act (JTPA) and Employment Service/Unemployment Insurance (ES/UI) participants was conducted by the Department of Labor. The survey responses of a sample of 2,501 JTPA applicants and 3,277 ES/UI participants were scored, weighted, analyzed, and used to develop a profile of JTPA and ES/UI program participants' prose comprehension, document literacy, and quantitative skills. Findings included the following: (1) 40-50% of JTPA and 40% of ES/UI participants demonstrate literacy skills on the lowest two levels; (2) 15-20% of JTPA and 20-25% ES/UI participants were at the highest two levels; (3) minorities scored below whites on all three scales, and blacks and Hispanics were disproportionately represented at the low and high ends; (4) 30-45% of those with high school diplomas or equivalents were at the lowest two levels; and (5) those at the higher levels avoid long unemployment, earn higher wages, and work in higher level occupations. Approximately half a million JTPA trainees and 7.6 million persons receiving UI or ES services have literacy skills that are insufficient for the current job market. The following recommendations were made: (1) outcome measures that ensure comparability across individuals and time periods, because the high school diploma no longer certifies a baseline of competence; (2) research on the literacy requirements of key job families; (3) increased attention on recruitment in publicly sponsored programs; and (4) broader literacy education within both K-12 and continuing education programs. (The study background and activity questionnaire, Oregon and Mississippi data, and additional JTPA and ES/UI data are appended along with the following reports: "Sampling, Weighting, and Sampling Error Estimation" and "Scaling and Scoring Procedures." The report includes 113 tables, 16 figures, and 66 references.) (MN)