Research on effectiveness of welfare-to-work approaches shows programs that combine approaches--job search assistance and education and training--have better employment and earnings outcomes than either approach alone. Consistent with findings and the work focus of the Personal Responsibility and Work Opportunity Reconciliation Act, states have been revising welfare programs to focus on moving people into employment rather than providing monthly cash assistance. States often expect clients to test the job market for a time before providing other services. Education and vocational training are largely reserved for those who need it to get or keep a job or to advance on a career ladder. As welfare agencies focus more on moving clients into jobs, goals and operations of the welfare system have become increasingly similar to those of the work force development system. The two systems are working more closely to meet needs of Temporary Assistance for Needy Families (TANF) clients. A review of seven state-sponsored studies and a recent nationwide study show that most adults who left welfare were employed at some time; many have returned to the welfare rolls. As welfare reform continues to evolve, attention should be paid to emerging challenges: develop ways in which systems can help the hardest-to-employ get and keep a job; enhance opportunities for low-wage workers to maintain employment and increase earnings; and develop ways to foster greater collaboration between the workforce development and welfare systems to meet employment needs of TANF clients. (YLB)