This report offers the first national picture of what happened to welfare leavers during the early stages of welfare reform. Among many conclusions, the report finds that sixty-one percent of former welfare recipients are working, mostly in service and clerical occupations, with a median salary is $6.61 per hour. While 69 percent work more than 35 hours per week, few of these jobs provide benefits, and only 23 percent of welfare leavers receive employer-sponsored health insurance. Fewer welfare leavers are participating in Medicaid, food stamps, and child care assistance than are eligible. Many former welfare recipients face economic hardships. One-third of leavers report having to cut meal size or skip meals, and nearly 40 percent report problems paying rent, mortgage, or utility bills.