This report represents Canada's background report to a review of the transition from initial education to working life. Part 1 is a paper on the context of Canadian education (social, economic, and educational environment) and common issues across Canada. An examination of issues shows that transition is now a more challenging period; the concept of transition is evolving as a result of the changing characteristics of the labor market and changing aspirations of young people; public attitudes toward employment prospects for young people may be too pessimistic; and many groups cooperate in design, funding, and delivery of transition programs and services. Significant trends include the following: (1) increased diversity of approach, (2) a shift from specific vocational courses to broad-based technology courses; (3) integration of work experience into secondary school; and (4) emphasis on links between curriculum and work. Parts 2 and 3 are case studies from Nova Scotia and Quebec. Each considers context; institutional framework; clarification of the transition concept; concerns about the transition process and outcomes; and changing expectations and objectives. Part 4 presents results of a questionnaire sent to these five provinces: Newfoundland and Labrador, New Brunswick, Ontario, Manitoba, and British Columbia. The 35 questions are grouped in these categories: general, initiatives, trends, programs, youth, and research. (YLB)