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This report, based upon data from the Longitudinal Surveys of Australian Youth (LSAY) program, examines the process of school leaving and the transition from school to postcompulsory education, training and the labour market. Young people who do not stay on to complete senior secondary school and are perceived as ‘at risk’ of experiencing a problematic transition are a major focus of the study. Three research questions are asked: (1) What are the influences on school non-completion, and have these influences changed over the past two decades? (2) What are the post-school experiences of school non-completers, and how do these differ from young people who complete Year 12? (3) How do sociodemographic and human capital factors influence the labour market activities of young people? The study found that the same sociodemographic factors that influenced school non-completion in the early 1980s were still in operation by the late 1990s. However, the influence of some factors (socioeconomic background for example) declined while representation among non-completers of young people with Australian-born parents and those living in non-metropolitan areas increased. A majority of non-completers reported that they left school for positive, work-related reasons such as getting a job or an apprenticeship. Analysis of the post-school activities of non-completers revealed that approximately half the non-completers were engaged in some form of education or training. Approximately half the non-completers who entered full-time work immediately or soon after leaving school, combined work with education or training. However, non-completers are less likely than completers to engage in postcompulsory education or training, and non-completers experienced less successful transitions than completers. The evidence presented here suggests that females, especially non-completers, face greater difficulties than males in the early post-school years. The report concludes that it is important to ensure that alternative educational and training pathways are available to all groups of young people.