Particular concerns during the year have been the rapid rise in unemployment, making it difficult for probationers and ex-offenders to find work, and the cutbacks in public expenditure, which have seriously affected the work of the housing and residential services section of NACRO. In the 1979-80 training year, NACRO's national inservice training program for the staff of hostels, day centers, and other projects for offenders continued to grow; however, financial limitations have caused delay in some planned courses and the cessation of scholarships for non-NACRO courses for half the year. At the beginning of 1980-81, NACRO had, for the first time, an education development team able to provide a national service of information and technical assistance to projects providing specialist education facilities for offenders, to the probation service, volunteer projects, local education authorities, and prison education departments. NACRO's workshops and day centers, which provide constructive activity for unemployed offenders, have been more in demand than ever. NACRO's Community Alternatives for Young Offenders team completed the second year of its 3-year program. The team works with a limited number of local authorities to develop strategies for providing noncustodial alternatives to care and custody for juvenile offenders. NACRO's Employment Development Unit, established to work with the probation service to develop programs for the unemployed, continued to develop and expand its work. Work also advanced in the areas of crime prevention and research, policy formulation, and public education. Extensive financial information on NACRO's work is provided.