A study based on supplementary questions in the October 1978 Current Population Survey revealed an improved job situation among U.S. youths both in and out of school, but it showed dropouts and those from low-income families at a distinct disadvantage. Overall, the number of employed youths (age 16-24) increased by 1.1 million from October 1977 to October 1978 although that segment of the population increased by less than 300,000. Most of the increase in the student labor force was accounted for by high school students. The large differences between the labor force participation rates of black and white youth (students and nonstudents) persisted or increased. The unemployment rate for dropouts was more than double that of high school graduates and three times that of college graduates. Youths from lower income families were less likely to be in the labor force, and if in it, much more likely to be unemployed. Three-fourths of the report consists of tabular data on the employment status of youth (high school or college students, graduates, and dropouts) by sex, age, race, family income, occupation/industry, and duration of employment; on additional combinations of the above variables; on reasons unemployed youth were looking for work; and on youth of Hispanic origin. Methodology for the survey is described briefly. (JT)