The first part of this monograph represents the proceedings of a 1-day conference of manpower analysts on the processes by which private industry meets changing manpower requirements and the implications of these work force adjustments for manpower policy. The second part consists of the report on which the conference discussion was based. The report is a summary of two doctoral dissertations prepared under grants from the Manpower Administration and is entitled, "Internal Labor Markets, Technological Change, and Labor Force Adjustment," by Peter Doeringer and Michael Piore. The internal labor market is an administrative unit, within which are performed the market functions of pricing, allocating, and often of training labor. It is governed by a set of institutional rules covering recruitment procedures, training, compensation, and the like, over which the employer exercised discretionary control. These internal mechanisms constitute the alternative modes of adjustment to changes in both production techniques and labor market conditions. Implications of the internal market are discussed in relation to federal programs of job training, recruitment and screening, coordination of public and private training programs, and governmental manpower planning and labor force adjustment programs. A bibliography lists over 100 sources. (ET)