This document is a continuation of CE 028 077 and uses the same statistical model (Markov Processes) with slight variations on the technique to carry out a simulation of the impact of the expansion in youth employment programs which occurred in fiscal 1978. Department of Labor 1977 figures for the total number of job/training positions funded by program were obtained, and 1978 figures were projected. These positions were then allocated across demographic groups on the basis of the distribution of enrollees by demographic group in the two years. The total expansion consisted of 221,000 jobs. Using the figures above and other factors in a simulation, it was estimated that the equilibrium impact of an expansion in youth employment and training programs by 221,000 slots with labor market conditions being what they were in fiscal 1977 would be reductions in unemployment rates of slightly more than one percent for nonwhite teenagers and small or negligible changes for other population groups. (KC)