Poverty among inner-city residents is associated with their marginal status in the labor market. Marginalization in the labor market begins during youth when important educational and employment decisions are made. Analysis of 1990 U.S. Census tract data for San Antonio, Texas identifies the lack of a high school diploma, poverty, non-employment, and non-enrollment in school as conditions of marginality for youth. Spatial patterns of youth labor market marginalization show concentrations in the inner city and in sectors on the West, South, and Eastside. Regression analysis reveals that levels of youth marginalization are associated with neighborhood context represented by the employment, behavioral, and ethnic characteristics of the overall residential population of a census tract.