Economic and demographic shifts in Appalachia show that overall conditions in the region are improving. This July 1972 economic report presents major changes in Southern Appalachia, Central Appalachia, Highlands Appalachia, and Northern Appalachia. The report includes (1) a summary of the previous year's economic report covering employment from 1965 to 1969, income from 1965 to 1968, and population growth over the 1960s; (2) a description and analysis of the most recent available trends in employment, work force, and unemployment (1969-70); (3) a discussion of the 1971 trends in Appalachia's 16 major labor market areas; (4) recent developments in income sources and growth (1968-69) and shifts in poverty in Appalachia over the 1960s; (5) a comparison of migration patterns in 1960-65 and 1965-70; and (6) a brief discussion of the quantity and quality of housing in Appalachia (based on 1970 census data). The analyses of income, employment, and migration do not cover the same years, owing to the varying availability of data. A list of the counties in the 4 regions of Appalachia is appended. The report contains tables and graphs of data. (NQ)