This annual report details projects and activities undertaken during the period from July 1, 1987 to June 30, 1988. Part I presents findings and recommendations from the National Commission for Employment Policy's work on U.S. employment in an international economy, patterns of participation in Job Partnership Training Act (JTPA) programs, and early intervention strategies for those youth who are most likely to have difficulty in the labor market. Part II describes the major activities of the Commission, including the continuance of its Congressionally mandated review of JTPA. A major part of this review is a study to determine the effects of JTPA performance standards on who is served and the types and costs of services. This part also includes a review of the Commission's outreach activities, including a hearing on issues surrounding job training in rural America and the problems facing displaced farmers in the Midwest, visits to employment and training sites around the country, and the first national meeting of State Job Training Coordinating Council Chairs. Part III summarizes the Commission's four formal meetings held during the program year. Appendix A contains the Commission's comments on the reports of the National Council on Vocational Education. Appendix B lists Commission reports. (YLB)