This guide summarizes key principles drawn from successful programs for helping unemployed workers find new jobs and presents a systematic approach to help states plan and manage their worker readjustment efforts. The guide contains two major sections. The first section is an overview and summary that includes background on the dislocation problem, describes characteristics of dislocated workers, outlines a framework for state program development, and summarizes principles drawn from the best experience with worker readjustment programs. The second section provides an explanation of the state role in worker readjustment. Included are subsections on the following topics: setting up a planning and management structure, organizing local programs, accessing resources, providing technical assistance to local programs, economic monitoring and analysis, client eligibility criteria, reporting requirements and performance standards, business and labor involvement, state legislative and regulatory actions, and economic revitalization for long-term recovery. Appendixes to the guide contain information on the Title III Dislocated Worker Program of the Job Training Partnership Act and on data sources regarding plant closures, major layoffs, and labor market conditions. (KC)