To alleviate the economic problems of youth, the Australian Education Council has expressed the need for a comprehensive youth policy whose aim should be to provide young people with options in education, training, or employment. Facts show a declining rate of retention to completion of secondary schools for males due to the present low employment levels and increased unemployment benefits. Conversely, a sharper decline in full-time employment opportunties for females and a reluctance to accept unemployment benefits influences females to stay in school. Student enrollment directly from school at universities, colleges, and technical and further education (TAFE) institutions has declined; the shortage of jobs, less value placed on degress, and unattractive scholarship plans act as disincentives. A decline in full-time employment is almost offset by an increase in part-time job opportunities but, unemployment benefit policies discourage part-time work. Full-time students hold most part-time jobs. A youth policy will provide options which will make unemployment the least acceptable alternative as full-time employment opportunities decrease. Success depends on (1) responsible schools teaching the basic skills, (2) a counseling system emphasizing pastoral care, (3) a rationalized education and training allowance scheme, (4) institutional responsiveness, and (5) work opportunities. Too hasty emphasis on the role of vocational education and TAFE should be avoided. (YLB)