The U.S. Department of Labor and the Japanese Ministry of Labor cooperatively reviewed the employment policies in the two countries in an attempt to promote understanding and cooperation between them and to develop the human capacities of workers in both countries. The report is composed of four parts: (1) Introduction, (2) Policies and Programs in the United States, (3) Policies and Programs in Japan, and (4) Conclusions. The problem of labor shortage, as seen from somewhat different perspective in the two countries, has led to a reexamination of educational and training systems for both the needs of the individual and those of the economy. The most striking difference between the two cultures is the status of youth: where in Japan he is sought after as an intern for the future, in the United States he competes on the basis of what he is worth in the short-run. Both countries are concerned with problems of underemployment, monotonous work, and job satisfaction. The study shows four main policy developments now emerging in the two countries: (1) a strengthening of the relation between employment and general economic policies, (2) positive efforts to promote mobility and the potential of workers, (3) training of individuals who otherwise would not contribute to the economy, and (4) closer collaboration between government and private groups to provide training. (MU)