THIS WAS ONE OF 20 DEMONSTRATION PROJECTS INITIATED IN 11 STATES IN 1961-63 TO GAIN EXPERIENCE WITH LABOR MARKET PROBLEMS ARISING FROM CHANGING TECHNOLOGY AND MASS LAYOFFS. THE FUNDAMENTAL AIM WAS TO COMBINE ACTION AND RESEARCH TO DEMONSTRATE WHAT THE STATE EMPLOYMENT SERVICE COULD DO IN AREAS WHERE THE LABOR MARKET WAS RAPIDLY CHANGING. END-OF-YEAR PERSONNEL DATA FROM 1956 AND 1962 FOR ALL HOME OFFICE EMPLOYEES WAS COLLECTED FROM A LARGE LIFE INSURANCE COMPANY PAYROLL TO OBTAIN AN OVERALL PICTURE OF THE SITUATION BEFORE AND AFTER COMPUTER CONVERSION. THE DIVISIONS OF THE ESTABLISHMENT MOST AFFECTED BY THE COMPUTER WERE STUDIED BY PREPARING AND COMPARING STAFFING PATTERNS AND INDIVIDUAL WORKER INFORMATION RECORDS BEFORE AND IMMEDIATELY AFTER EACH UNIT WAS CONVERTED TO ELECTRONIC DATA PROCESSING. ASSUMING THE INSURANCE COMPANY STUDIED IS REPRESENTATIVE OF OTHER LARGE COMPANIES IN WHICH "PAPER WORK" IS THE END PRODUCT, SOME CONCLUSIONS WERE -- (1) THE PROPORTION OF CLERICAL WORKERS WILL INCREASE AT A SLOWER RATE THAN IN RECENT YEARS, (2) THE PROPORTION OF PROFESSIONAL WORKERS WILL INCREASE AT A FASTER RATE, (3) PRODUCTIVITY PER CLERICAL WORKER IS INCREASING RAPIDLY IN AUTOMATED ESTABLISHMENTS, (4) THE NUMBER OF CLERICAL POSITIONS OPEN TO WORK FORCE ENTRANTS IN THE LIFE INSURANCE INDUSTRY IS DECLINING, AND (5) TRADITIONAL POSITIONS WILL NOT BE AVAILABLE FOR FUTURE HIGH SCHOOL GRADUATES AT THE PRESENT VOLUME. THE APPENDIXES INCLUDE STAFFING TABLES AND HOME OFFICE EMPLOYMENT. (SL)