Although the number of Master's level counselor training programs has increased dramatically over the last 20 years, reduction in state and federal funding has reduced the demand for counselors. To examine the supply and demand for counselors in four San Francisco Bay area counties, a regional survey of degrees awarded between 1972 and 1981 in counseling, social work, and clinical psychology was conducted, as well as employment surveys of counseling positions in schools, colleges and universities (including community colleges), and government agencies (including mental health clinics and Veterans' Administration hospitals). The employment patterns of counseling graduates from the California State University at Hayward (CSUH) were examined also through a survey of 304 graduates from the classes of 1972, 1976, and 1980. The regional survey results indicated that supply, based on the total number of Master's degrees awarded in the Bay Area between 1972 and 1981 (8,326 total degrees, 4,350 of which were counseling degrees), far exceeded demand for employment. Approximately 260 positions were filled by counselors between 1972 and 1981 in the 4 Bay Area Counties. Roughly 160 positions went to community college counselors, and the remaining 98 were divided among school counselors, career counselors in university settings, and rehabilitation counselors in one county mental health department. Although not surveyed, private sector agencies potentially could have hired 2,760 counselors over the 10-year period. Employment prospects for the next 5 years are minimal. Results of the graduate employment follow-up (response rate of 34%) showed that neither year of graduation nor area of specialization had any significant impact on job history. The rate of employment in counseling was found to be lower for CSUH graduates than for counseling graduates in other parts of the country. (Author/BL)