Current high unemployment and underemployment for all youth, and particularly for youths from poor and minority families, led to this study on the crisis of youth's transition from school to work. The study was conducted in four phases: A review of the literature and interviews with work-force experts to identify issues and alternatives; an analysis of the data and opinions gathered and the preparation of a background paper; a critical analysis of that paper; and the preparation of a position paper on youth employment containing specific policy and programmatic recommendations for both short and long-term policies. The 16 recommendations are presented as a group and then substantiated individually in discussions of (1) the background of work and labor practices, (2) the labor market, including the current job situation, credentialism, child labor laws, and labor market data and information, (3) preparation for work, including education, vocational education in the high schools, postsecondary vocational education, career education, youth manpower programs, evaluation of the Comprehensive Employment and Training Act (CETA), and linkages, and (4) Federal involvement in dealing with these issues. (TA)