This notebook contains materials for a workshop to teach participants how to address the needs of youth and adults for improved literacy, employability, and productivity. Chapter 1 provides information about the current state of youth and adult literacy, employability, and productivity in the United States. Chapter 2 presents a conceptual framework, called "Functional Context Education" (FCE), for developing instructional programs for youth and adults that are based on the findings of cognitive and empirical research on literacy. Chapters 3, 4, and 5 contain three case studies that illustrate how concepts of FCE have been used to develop instructional programs for military and civilian populations: (1) Project FLIT (Functional Literacy), U.S. Army literacy programs for cooks, automotive repairers, and communication, medical, and supply clerk workers; (2) Experimental Functional Skills Programs, U.S. Navy reading and mathematics programs for career advancement using teachers, books, computers, and peers; and (3) "Cast-Off Youth: Policy and Training Methods from the Military Experience," a functional context electronics technician's course that integrates basic skills and basic electricity and electronics education. Chapter 6 discusses the need for a conceptual model of adult basic skills development, four principles for program development, and the Instructional Systems Development procedures for developing basic skills or other technical training in work settings. A list of 65 references is attached. (YLB)