BY PROVIDING 12 TO 18 MONTHS OF CLOSELY SUPERVISED EMPLOYMENT AND STABLE INCOME, THE PROGRAM ATTEMPTS TO HELP CHRONICALLY UNEMPLOYED PERSONS ENTER THE REGULAR LABOR FORCE. A SECONDARY PURPOSE IS TO REDUCE CRIMINAL ACTIVITY AND DRUG USE. FINDINGS FROM INTERVIEWS WITH A SAMPLE OF 2,830 PARTICIPANTS AT SELECTED SITES (ABOUT 60 PERCENT OF THE TOTAL DEMONSTRATION POPULATION) SHOW THAT PARTICIPANTS WITH SUPPORTED-WORK JOBS IMPROVED OVER PARTICIPANTS WHO SERVED AS CONTROLS. DURING THE PERIOD OF SUPPORTED WORK, EMPLOYMENT AND ECONOMIC STATUS IMPROVED IN ALL FOUR TARGET GROUPS, PARTICULARLY AMONG WELFARE RECIPIENTS. CRIMINAL ACTIVITIES WERE REDUCED AMONG EX-ADDICTS, BUT NOT AMONG EX-OFFENDERS AND DROPOUTS. DRUG USE WAS UNAFFECTED. HOWEVER, IN THE 2-MONTH POST PROGRAM PERIOD, THE DECLINE IN EMPLOYMENT AND ECONOMIC STATUS WAS GREATER THAN HAD BEEN EXPECTED FOR ALL TARGET GROUPS EXCEPT WELFARE RECIPIENTS. THIS INTERIM REPORT INCLUDES A SUMMARY, DESCRIPTION OF THE STUDY SAMPLE, DETAILED FINDINGS FOR EACH TARGET GROUP, AND CONCLUSIONS, WITH SUPPORTING DATA AND A LIST OF REFERENCES, THE FINAL REPORT ON THE PROGRAM WILL ENCOMPASS ALL SITES AND WILL TRACK THE EXPERIENCES OF SELECTED PARTICIPANTS FOR A 27 TO 36-MONTH PERIOD.