Youth unemployment and environmental degradation are two critical issues facing Australia today. This action research study concerns learning and teaching with participants in a government labour market program which was established to address these two issues. The study was based on three cycles of action research with six groups of participants. The main objective of the research evolved to consider whether critical thinking and action learning can enhance self-concept and environmental education for unemployed young people. The research provides a positive response to this problem, although certain limitations are noted. Conclusions are drawn in five areas. Three of these are from the first cycle of action research. These relate to environmental attitudes, knowledge and action; approaches to environmental education and learning; and the impact of unemployment, peer pressure and mass culture. Two conclusions are drawn from the second cycle of action research. These relate to the integration of action learning and critical thinking strategies into the learning and teaching; and the individual participants' life history and prior knowledge and experience of environmental issues. Recommendations are made concerning professional development and support for staff working in the area, and the planning and implementation of programs. The major recommendation is for the integration, where appropriate, of integrated critical thinking and action learning strategies, through all aspects of the training and project work. This recommendation draws on evidence from a number of areas where these approaches are shown to be beneficial. These include the potential for emancipation and improved selfconcept, and the contribution to environmental education.