ABSTRACT Only about 10 to 15 per cent of the students from vocational schools for the mentally retarded in Sweden can find employment within the ordinary labour market without subsidies from the state. This study examines explanations and conceptions of this phenomenon among teachers for the mentally retarded as well as supervisors and representatives of the employers at supervised work training places. The purpose of the study is to make an inventory of problems and to advise on how to improve the teaching as well as the conditions faced by the mentally retarded in employment.