Employer-sponsored, job-related training as a means of satisfying labor demands has potentially profound implications for the operation of the nation's economic system. The alternatives of bidding for desired workers and downgrading job requirements tend to increase inflation and lessen productivity. Since the end of the 1960's, the ability of employers to attract and retain workers at a given point in the business cycle has declined substantially. This apparently sharp increase in labor market imbalance (a worsening match between the skills possessed by labor force members and the skills required in jobs) has not been met by an increase in the per employee amount of employer-sponsored (nominally paid for) job-related training. There is strong evidence that employers have turned to wage bidding to attract needed employees. Employers' decisions concerning low investment in formal training have been guided by profit maximization. While this may be good private decision making, it may lead to undesirable social outcomes--inflation and lower productivity. (Twelve tables are found in the body of the paper and in an appendix.) (YLB)