This report describes the current educational and employment situation of Australian Indigenous youth in terms of their pathways from school to work. A literature review and analysis of statistical data identify barriers to successful transition from school to work, including forms of teaching, curriculum, and assessment that pose greater educational challenges for Indigenous youth, as well as broader social issues such as racism, poverty, poor health, remote location, incarceration, and absence of employment opportunities. The report also highlights the need for improvements in educational outcomes as the key to improved results in the labor market. The literature review provides an overview of common features associated with successful transitions and programs, systemic weaknesses inhibiting success, relevant government programs, and issues and solutions at various youth transitions: primary to junior high school, junior high to senior high school, school to postsecondary vocational education, school to higher education, school to work, and unemployment to school or work. The statistical report uses data from the 1991 and 1996 censuses to examine the participation of Indigenous youth in education and their subsequent educational attainment and labor market participation. Data tables and analysis cover demography by geographic area and age, continuation in school to year 12 and dropout rates, participation in schooling and tertiary education, vocational education and training, higher education enrollment and persistence, educational attainment, labor market participation and assistance, and employment and unemployment in relation to educational attainment. An annotated bibliography contains 124 entries published 1988-98. (Contains 58 data tables.) (TD)