The Sectoral Employment Development Learning Project (SEDLP) examined industry-based ("sectoral") approaches to employment training to determine whether they can help low-income individuals advance in the labor market. The SEDLP sample included 732 individuals at baseline, including 185 recipients of Temporary Assistance for Needy Families (TANF). Of the 185 TANF recipients, 143 were interviewed 1 year after their SEDLP training and 94 were interviewed 2 years after the end of training. Of the TANF recipients surveyed 2 years after their SEDLP training, 68% were working year round; 45% received health insurance through their jobs; 48% had moved out of poverty based on their individual earnings alone, and 82% believed that their sectoral training program had improved their job or career prospects. It was recommended that TANF laws be revised to include the following provisions: (1) offer states flexibility to develop and implement appropriate education and training services for welfare recipients, including pre-employment training; (2) encourage states to invest in effective training, such as the industry-based training models studied in SEDLP; (3) encourage states to monitor outcomes such as employment, job retention, job quality, earnings, growth, and job advancement; and (4) provide sufficient funds to states to enable them to offer quality programs and monitor programs' effectiveness. (Contains 26 footnotes.) (MN)