The Economic Policy Institute (EPI) was founded in 1986 with the intent of widening the debate on U.S. economic policies by presenting analyses that provide an alternative point of view from those of various conservative research institutions. The two papers presented in this document were originally prepared for a seminar designed to identify principles upon which new labor market policies might be launched. In "The Possibilities of Employment Policy", Paul Osterman argues that current programs isolate and stigmatize their clients. Programs for dislocated workers respond to emergencies in an inevitably limited way, and current political support for employment and training systems is limited. Revived programs should include an expansion of eligibility, a unification of programs under a broadly representative local agency, a rethinking of the entry process for young people, and an expansion of the general training made available to employed adults. In "A New Labor Market Agenda" Ray Marshall also advocates a broad national strategy, but stresses that tight budgets require quality programs be built for those who most need them. He points out that graduates of proven programs such as the Job Corps are not stigmatized, and that such programs should be fully funded. Existing programs should be strengthened by developing managerial capacities and pursuing a consistency in funding. Basic education in the school systems is a major factor determining the success or failure of programs such as the adjustment of dislocated workers or the breaking of inter-generational poverty. Discussions by seminar participants follow each paper, and a list of EPI study series, working papers, and briefing papers is included. (PPB)