WITH THE MANPOWER DEVELOPMENT AND TRAINING ACT OF 1962 THE UNITED STATES EMBARKED ON A TYPE OF GOVERNMENT PROGRAM THAT HAS EXISTED IN WESTERN EUROPEAN NATIONS SINCE WORLD WAR 2. IN ALL THE EUROPEAN NATIONS STUDIED, RETRAINING PROGRAMS ARE A PERMANENT INSTRUMENT OF LABOR MARKET POLICY, AS USEFUL IN TIGHT LABOR MARKETS AS IN PERIODS OF UNEMPLOYMENT. RETRAINING PROGRAMS MUST BE LINKED WITH JOB OPPORTUNITIES, ADEQUATE FISCAL POLICIES, AND PUBLIC WORKS OR RELIEF PROGRAMS. THE SOCIAL AND ECONOMIC GOALS OS THESE PROGRAMS MUST BE CONSIDERED. A CRITERION OF EFFICIENCY IMPLIES SELECTION OF YOUNG AND HIGHLY QUALIFIED TRAINEES, THEREBY PRESUMABLY INCREASING PRODUCTIVITY. GREATER STRESS ON THE EMPLOYABILITY OF THE DISADVANTAGED IMPLIES POLICIES THAT AVOID SCREENING OUR OLDER, RELATIVELY UNEDUCATED PERSONS, IN THE UNITED STATES. THE PROBLEMS OF ADAPTING RETRAINING POLICIES TO TECHNOLOGICAL CHANGE NOW BEING FACED MUST BE CONSIDERED IN EUROPE. (THE DOCUMENT INCLUDES TABLES AND REFERENCES.) THIS REPRINT FROM AUTOMATION AND ADVANCED TECHNOLOGY (MACMILLAN, LONDON) IS AVAILABLE FROM 201 CALIFORNIA HALL, UNIVERSITY OF CALIFORNIA, BERKELEY, CALIFORNIA 94720. 28 PAGES. (LY)