This is the first of a 2-volume final report of a 20-month research and development project conducted by the Michigan State Employment Service agency and a private research firm. The purpose of the project was to design and test innovative methods of increasing the volume and quality of jobs listed with the employment service. Included are: (1) a description of the problem including steps taken to solve it and the resulting demonstration model, (2) the quantitative and qualitative results of the demonstration, (3) the implications for new policy and program directions, and (4) a discussion of areas requiring further research and experimentation. The second volume of the report is available as VT 020 345 in this issue. (Author/SN)