Sectoral transformation (inter-industry shifts), which is generally analyzed by use of the Fisher-Clark tri-partite division, is examined in this study dealing mainly with the 1960-1970 decade and based on the 1/100 sample of the 1960 and 1970 censuses. (The Fisher-Clark tri-partite division of labor involves a primary sector--agriculture, mining, fishing, forestry; secondary sector--manufacturing, construction, and utilities; and tertiary sector--transportation, commerce, and services.) A new six-sector industry classification scheme is presented to increase the meaningfulness of the tertiary sector, which previously has been a residual category. The six sectors are extractive, transformative, distributive services, producer services, social services, and personal services. Attention is centered on these issues: (1) Identifying the industry structure and tracing its transformation, (2) who is employed in what sectors and industries, and (3) important consequences of sectoral transformation. The first issue is addressed in the chapters on long-term trends (1870-1970) of the sectoral transformation (II), work scheduling and stability of employment (III), age structure and industry change (IV) and the interrelation of industry and occupation (V). The second issue takes up the industry position of females (VI), and the position of Blacks and Mexican Americans in comparison with Anglos in industry and occupational structure (VII). The third issue is covered in the discussion of earnings inequality and the relative merits of the sector model and the human capital model (VIII). The final chapter (IX) addresses a number of sociological implications of the movement to the service economy. Some policy implications of this research are included. (NTIS/TA)