IN 1967 THE COUNTRY AVERTED AN ECONOMIC DOWNTURN AND CONTINUED INSTEAD TO COMPLETE ITS 7TH CONSECUTIVE YEAR OF EXPANSION. ALTHOUGH GAINS FOR THE YEAR AS A WHOLE WERE SMALL IN COMPARISON WITH THE SHARP ADVANCES OF THE PREVIOUS 2 YEARS, BY YEAREND, THE FORCES OF GROWTH WERE ABUNDANTLY EVIDENT AND POINTED TO A RENEWAL OF IMPROVEMENT IN THE EMPLOYMENT SITUATION. BY THE END OF 1967, THE OVERALL UNEMPLOMENT RATE AND THE RATES FOR MOST (BUT SIGNIFICANTLY NOT ALL) GROUPS IN THE LABOR FORCE WERE THE LOWEST SINCE THE KOREAN WAR. A TYPICALLY MORE-DELAYED RECOVERY CHARACTERIZED THE VULNERABLE GROUPS. LARGE NUMBERS OF THESE WORKERS HAVE ONLY RECENTLY BEGUN TO BENEFIT FROM THE ADDITIONAL JOBS, OCCUPATIONAL UPGRADING, AND RISING INCOMES THAT HAVE ACCOMPANIED HIGH AND SUSTAINED ECONOMIC GROWTH. BUT THE FIRST SIGNS OF ECONOMIC SLOWDOWN IN 1967 WERE REFLECTED IN LAYOFFS OF BLUE-COLLAR WORKERS AND IN RISING UNEMPLOYMENT AMONG UNSKILLED WORKERS, NEGROES, AND TEENAGERS. RENEWAL OF THE ECONOMIC EXPANSION BROUGHT TO THE FORE THE DANGERS THAT ATTEND RAPID GROWTH, SUCH AS RAPIDLY RISING PRICES, INCREASED COSTS OF PRODUCTION, AND INDUSTRIAL SHIFTS, WHICH COULD RESULTS IN UNBALANCED GROWTH AND THREATEN CONTINUATION OF PRESENT PROGRESS. AT A TIME WHEN THE NATION IS POISED TO MOVE ON TO FULL EMPLOYMENT, A POLICY OF CAREFULLY SELECTING BALANCED GROWTH TARGETS THAT WILL MAKE THE GREATEST RELATIVE IMPACT ON THE DISADVANTAGED IS INDICATED. THIS CHAPTER APPEARS IN "MANPOWER REPORT OF THE PRESIDENT AND REPORT ON MANPOWER REQUIREMENTS, RESOURCES, UTILIZATION, AND TRAINING" (1968) AVAILABLE AS VT 001 025. (ET)