PRODUCER SERVICES, THOSE SERVICES WHICH BUSINESS FIRMS, NONPROFIT INSTITUTIONS, AND GOVERNMENTS PROVIDE AND USUALLY SELL TO THE PRODUCER RATHER THAN TO THE CONSUMER, AND THE FACTORS AFFECTING THEIR SUPPLY AND DEMAND ARE ANALYZED. APPROXIMATELY 8.5 MILLION WORKERS, OR ABOUT 13 PERCENT OF THE TOTAL, ARE EMPLOYED IN PRODUCER SERVICES. DURING THE 1950-60 DECADE, EMPLOYMENT IN PRODUCER SERVICES SHOWED A GROWTH RATE OF 21.3 PERCENT COMPARED TO 15.2 IN TOTAL EMPLOYMENT. ABOUT 23 PERCENT OF THE NATIONAL INCOME WAS GENERATED IN THE PRODUCER SERVICES WHILE CONSUMER SERVICES INDUSTRIES ACCOUNTED FOR ABOUT 50 PERCENT OF TOTAL EMPLOYMENT AND GENERATED ONLY 37 PERCENT OF THE NATIONAL INCOME. THE FELT NEED OF AMERICAN INDUSTRY FOR LONG-RANGE PLANNING IS RESULTING IN GREATER USE OF CONSULTATIVE TYPES OF PRODUCER SERVICES, AND THE EXISTENCE OF DEVELOPED PRODUCER SERVICE INDUSTRIES ENCOURAGES THE ESTABLISHMENT AND GROWTH OF FIRMS WHICH USE SUCH SERVICES. THE PRODUCER SERVICES PLAY A CRITICAL ROLE IN ECONOMIC DEVELOPMENT BOTH AS A CATALYTIC AGENT AND, IN SOME INSTANCES, AS AN INITIATING FACTOR BECAUSE THEY REDUCE THE COST OF FUNCTIONS FORMERLY PERFORMED INTERNALLY, PERMIT MANAGEMENT TO SPECIALIZE IN PRIMARY AREAS OF ACTIVITIES OF THE FIRM, AND MAKE INNOVATIONS POSSIBLE. WITH SPECIFIC REGARD TO MANPOWER PROBLEMS, RESEARCH IN PRODUCER SERVICES IS NEEDED ON THE NATURE AND CONDITIONS OF EMPLOYMENT IN FIRMS SUPPLYING DIFFERENT KINDS OF SERVICES AND IN INDUSTRIES SUPPLYING SERVICES TO ANOTHER FIRM OR CONSUMER. THIS DOCUMENT IS AVAILABLE FOR $6.00 FROM COLUMBIA UNIVERSITY PRESS, 440 WEST 110TH STREET, NEW YORK, NEW YORK 10025. (MM)