Vocational education plays a significant role in the nation's economic development in terms of its capacity to make individuals more employable. It can respond to specific regional needs by producing the skilled workers for a rapidly growing industry. If, however, the industries of a region do not utilize the skills of the existing labor force, it is possible for the region to try and attract the appropriate industries, rather than retrain the workers. While vocational education alone will not result in the economic development of a state, it has been shown that programs such as CETA do increase a state's capacity for economic growth. Because of the importance of vocational education's role, an effort should be made to coordinate it with national manpower policy, and to provide closer links with private employers and labor unions. Occupational projections are critical factors in determining needs for vocational education programs, and a number of models have been developed to determine and project manpower supply and demand. Since a well-trained work force can draw industries to a region, vocational education must develop more programs like RETONE (Relating Training to Occupational Needs) which not only assess employer needs but identify employment barriers. Vocational education, by improving training programs and by providing training to marginally productive workers, can affect the productivity level of the work force. (ELG)