THE PURPOSE OF SUPPORTED WORK, DEFINED AS A STRUCTURED, TRANSITIONAL EMPLOYMENT EXPERIENCE, IS TO PROVIDE HARD-TO-EMPLOY PERSONS WITH THE KIND OF ENVIRONMENT IN WHICH THEY CAN DEVELOP INTO WORKERS. SUPPORT WORK IS DISTINGUISHED FROM OTHER MANPOWER PROGRAMS BY THREE ELEMENTS: PEER SUPPORT, GRADUATED STRESS, AND CLOSE SUPERVISION. AT THE END OF THE PROGRAM'S SECOND YEAR, THERE WERE 2,000 ACTIVE PARTICIPANTS AT 14 SITES. A TOTAL OF 5,400 PERSONS -- EX-OFFENDERS, EX-ADDICTS, WOMEN WHO WERE LONG-TERM RECIPIENTS OF AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC) PAYMENTS, AND SCHOOL DROPOUTS -- HAD BEEN ENROLLED IN THE PROJECTS. OF THE 3,600 PERSONS WHO HAD LEFT THE PROGRAM, 25 PERCENT MADE THE TRANSITION TO REGULAR, NONSUBSIDIZED EMPLOYMENT. DURING THE SECOND YEAR, ENROLLMENT DOUBLED, THE NUMBER OF WORK SITES INCREASED, AND THE PER-PERSON COST OF RUNNING THE PROGRAM WAS REDUCED. THE IMPORTANCE OF GOOD MANAGEMENT AT THE LOCAL LEVEL BECAME APPARENT, DIFFERENCES IN PROGRAM IMPACT AMONG TARGET GROUPS BECAME CLEARER, AND THE EXCEPTIONAL PERFORMANCE OF THE AFDC TARGET GROUP WAS PARTICULARLY EVIDENT. OF 1,098 EX-OFFENDERS WHO LEFT THE PROGRAM DURING THE SECOND YEAR, 28.9 PERCENT HAD POSITIVE DEPARTURES (TO SCHOOL OR TO A JOB), 54.7 PERCENT HAD NEGATIVE DEPARTURES (FIRED, REINCARCERATED, ETC.), AND 16.4 PERCENT HAD NEUTRAL DEPARTURES. THE SECOND-YEAR REPORT PRESENTS DETAILED INFORMATION AND STATISTICS ON CHARACTERISTICS OF THE CLIENT POPULATION, METHODS BY WHICH PARTICIPANTS ARE IDENTIFIED AND RECRUITED, PROGRAM DESIGN, JOB CREATION (WORK SITE DEVELOPMENT), PARTICIPANT PERFORMANCE, AND THE SUCCESS OF SUPPORTED WORK AS COMPARED TO OTHER EMPLOYMENT PROGRAMS. PLANS FOR FOLLOWUP EVALUATION OF PROGRAM PARTICIPANTS ARE ALSO PROVIDED.