Dropouts constitute an individual and a social problem because they experience higher unemployment rates and lower earnings than other workers and often become a social burden as well, requiring public assistance and engaging in crime. Although the long-range statistical trend is toward fewer and fewer dropouts, the short-range trend indicates that this trend may be reversing. Dropping out is not evenly distributed racially, economically, or geographically. In general, urban public schools have higher dropout rates than others. Young women, especially blacks, cite pregnancy and marriage as reasons for leaving school, while young men are more likely to leave school because they dislike it. Significant numbers of men and women also cite economic reasons for leaving school. Related to the dropout problem are a number of intertwined issues such as unemployment, crime and vandalism, drug and alcohol abuse, political alienation, teenage pregnancy and childbirth, and homicide and suicide. All of these problems can be viewed as connected to changes in the youth labor market. A strong historical case can be made that the educational system has followed, not led, the labor market. Rapid technological changes and the decline in demand for youth labor have overloaded the educational system. One policy recommendation to help young people is the establishment of a voluntary national service that is open to all young people. This service could include home care of the elderly, day care, natural resource conservation, and disaster relief. 60 references.