JOBS (Job Opportunities in the Business Sector) implementation faces major challenges in every state, but two issues are of particular importance in the South: the impact of low welfare benefits and the impact of low educational levels among Aid to Families with Dependent Children (AFDC) recipients. The impact of low welfare benefits shows up because all 10 Southern states studied have substantially lower AFDC payments than the national median. Although it is difficult for a family to live on AFDC for any substantial length of time, a very low wage job, such as can be provided by the JOBS program, will make a family ineligible for AFDC in a Southern state. Therefore, long-term planning for the JOBS program can be difficult because a temporary interruption in AFDC eligibility tied to a temporary increase in income will make a person ineligible for the JOBS program as well. Obtaining a low-wage job following participation in the JOBS program may not make the family better off because they lose AFDC and health benefits and incur work-related expenses. Transitional services are needed to help JOBS participants make the transition to private jobs. The impact of low levels of education among AFDC recipients in the South means that JOBS participants may have to spend too much time in education programs or that the adult education programs available may not provide enough hours or prepare participants for better jobs. Recommendations for improving the JOBS situation in the South include the following: (1) choosing and monitoring adult education services carefully; (2) combining education with employment; (3) combining adult and child development classes; and (4) offering concurrent or integrated education and job training. (KC)