A study of the employment problems facing physically and mentally handicapped youth is reported. To illustrate the main points, results of extensive interviews with seven handicapped youth are juxtaposed with statistics and findings. The study looks at tne continuum of services offered to handicapped individuals, including understanding the disabilities and teaching mainstreamed students, teaching and training handicapped youth through vocational education, and postsecondary training and employment of handicapped youth. The impact of the Education for All Handicapped Children Act of 1975 is assessed with emphasis on parent involvement in the Individualized Education Program process and Congress's failure to appropriate money. The level of service to handicapped youth by vocational education in high schools and the involvement in Comprehensive Employment and Training Act programs by handicapped youth are also discussed. The continuum of service from preschool to employment is then presented as exemplified by several exceptional programs. A narrative follows of events of 1982, during which the gains registered by advocates for the handicapped population were tested in all branches of the federal government. Recommendations are made regarding creation of a national commission to study the economics of preparing handicapped individuals for work and amendments to and implementation of the Job Training Partnership Act. (YLB)