THE ACCOMPLISHMENTS OF 1965, THE PROBLEMS TO BE SOLVED, AND THE NEW DIRECTIONS THE MANPOWER DEVELOPMENT AND TRAINING ACT (MDTA) PROGRAMS ARE TAKING TO MEET THE MANPOWER CHALLENGES THAT LIE AHEAD ARE THE SUBSTANCES OF THIS REPORT. CONTENTS INCLUDE (1) PROGRAM DESCRIPTIONS, (2) EXAMPLES AND ACCOMPLISHMENTS OF EXPERIMENTAL AND DEMONSTRATION PROGRAMS, (3) PROGRAM EVALUATION, (4) MANPOWER RESEARCH PROGRAMS, (5) PROGRAM SUPPORT AND COMMUNITY INVOLVEMENT, (6) MANPOWER ADVISORY COMMITTEES, AND (7) NEW RESOURCES AND DIRECTIONS. IN 1965 THE MDTA PROGRAM ENROLLED 186,000 TRAINEES, OF WHOM 110,000 COMPLETED TRAINING. OF THOSE WHO COMPLETED TRAINING, 74 PERCENT WERE EMPLOYED. INSTITUTIONAL TRAINING PROJECTS PROVIDED IN-SCHOOL OCCUPATIONAL INSTRUCTION TO 145,000 PERSONS. TRAINING WAS PROVIDED AT THE JOB SITE FOR 35,000 PERSONS. EXPERIMENTAL AND DEMONSTRATION PROJECTS FOR THE DISADVANTAGED SERVED 40,000 PERSONS. THE PROGRAM HELPED TO MEET LABOR DEMAND FOR 112,000 JOBS IN SERVICE AND SERVICE-RELATED OCCUPATIONS THROUGH JOB DEVELOPMENT PROGRAMS. THE MDTA TRAINING PROGRAMS WILL BE REDIRECTED TO FOCUS ON TWO MAJOR PROBLEMS IN THE ECONOMY--THE EMERGENCE OF SOME SELECTED SKILL SHORTAGES AND THE EXPOSURE OF RESIDUAL BUT LARGE POCKETS OF HARD-CORE UNEMPLOYMENT AMONG FAIRLY WELL DEFINED GROUPS. THE DEVELOPMENT OF A NATIONAL-STATE MANPOWER DEVELOPMENT PLANNING SYSTEM TO RECONCILE STATE OPERATIONS WITH OVERALL NATIONAL MANPOWER NEEDS AND OBJECTIVES TO PROMOTE A RATIONALIZED UTILIZATION OF TRAINING RESOURCES IS IN PROCESS. THIS DOCUMENT IS AVAILABLE AS L1.42--966 FOR $1.25 FROM SUPERINTENDENT OF DOCUMENTS, U.S. GOVERNMENT PRINTING OFFICE, WASHINGTON, D.C., 20402. (PS)