This article reports on first-year employment experiences of a randomly sel
ected sample of 213 Illinois TANF leavers. Aggregate employment levels were
70 percent at exit, and leavers typically generated earnings from a single
full-time job. However, employment often was unstable, so that only about
one-fourth of leavers had the same job both at exit and when interviewed 10
-11 months later. Employment instability resulted from the marginal or temp
orary nature of many jobs, as well as employment barriers such as health pr
oblems and lack of day care. Average wage levels easily exceeded the minimu
m wage and grew during the first year after exit, but nonetheless often wer
e insufficient to provide incomes above the poverty level. The findings und
erscore the need to develop post-employment service strategies that assist
persons in accessing work-related benefits such as child care and Medicaid,
as well as improved income support strategies such as expansion of the Ear
ned Income Tax Credit.