It is argued that the Federal government's youth employment and training policy is at a crossroads and that a budget-cutting Administration and a deficit-conscious Congress face a choice between shortchanging American youth with subminimum pay or investing in employment, training, and education for the present and future of young people. First, the following aspects of the situation are discussed: the current labor force status of youth; employment progress between 1975 and 1979; the decline from 1979 to 1983; and the positive results of the Youth Incentive Entitlement Pilot Projects. Overall teenager employment trends are tabulated along with unemployment among White, Black and Hispanic teens. Next, estimates for "real" jobless rates for States and select metropolitan areas for February 1985 are tabulated. School dropouts and joblessness are then discussed and the school enrollment and labor force status of teens and 20-24 year olds are tabulated. The percent of subgroups not enrolled in school with less than a high school diploma is also tabulated. An evaluation of how the Job Training Partnership Act has served youth follows, and an argument is made against the Administration's proposal to introduce a subminimum wage for youths. And finally, legislative actions that would maintain and create jobs and training and educational opportunities for youth are considered. (RDN)