Aspects of the relationship between education and work (career education) for youths and adults and directions for future federal policy in this area are identified in this document. Part 1 examines the problems that youths face in making a successful transition from school to work, including knowledge of the labor market, self-knowledge of abilities and aptitudes, occupational socialization, certifying competencies, and assistance in finding work and developing job seeking skills. Effectiveness of current programs in addressing these problems is also discussed. It is suggested that the Vocational Education Act or the Comprehensive Employment and Training Act (CETA) be amended to effect the provision of school-based placement services and establishment of state career information systems. It is also contended that federal activities in the areas of certification of competencies, occupational socialization, and self-knowledge of abilities and aptitudes fall within the categories of research and development or technical assistance and training and could be funded under current discretionary authority and budget levels. Part 2 addresses the problems which adults face in finding opportunities to change their career or life directions and the inequitable distribution of work in American society. Recommendations for federal policy focus on research on career and life redirection and renewal, career information and guidance systems, time-income tradeoff and work scheduling options, and leave-of-absence without pay. Implementation of these recommendations is discussed. (TA)