The value of linking manpower analyses and educational policy formation is illustrated by the experience of the New Jersey Department of Higher Education in planning programs for professional nurses. After reviewing the history of manpower planning for nurses in New Jersey, the results of a 1980 nursing study and projections of the future need for registered nurses in New Jersey are examined. Among the areas addressed by the 1980 study are the following: the present supply and distribution of registered nurses in New Jersey by employment sector, geographic location, educational preparation, and age; and specific settings in which there is a nursing personnel shortage and contributing factors. Findings include the following: A total shortage of approximately 2,300 full-time equivalent nurses was identified as of January 1980 (primarily in acute and long-term care facilities and for specific shifts and specialty services); although the largest number of hospital nurses are graduates of the traditional hospital-based diploma schools, this percentage has been declining in recent years and the number of associate degree nurses in hospitals has been increasing; and total enrollments in nursing education programs in New Jersey declined by 6 percent between 1977 and 1979. In addition to projecting the demand for the total number of registered nurses through 1990, projections were developed for the distribution of nurses by educational degree and employment sector. Recommendations developed by the Department of Higher Education based on the study findings are briefly considered, and summary tables on trends and projection methods of the other states in the nation are presented. (SW)