An analysis of the structural elements of the employment situation was done in 1977 to provide congressional members with pertinent information for their use in making policy decisions about federal role and budget in employment and training programs. It was concluded that the Federal Government can implement four basic budget strategies: create additional jobs, increase the skills of certain types of workers, provide income assistance to workers experiencing employment problems, and reduce discriminatory practices. Although public service employment programs in 1976 came in high proportions from low-income and minority groups, training programs placed a greater emphasis on the disadvantaged and youth populations. Public service employment can increase the current earnings of unemployed workers but it is doubtful that there are any lasting gains in future earnings. There are low annual earnings gains from training programs in relation to costs. However, training programs may fund opportunities for youth, minorities, and the economically disadvantaged that are not available in the private sector. (This booklet has a chapter describing recent trends in employment, training, and related income assistance policy; discusses the four possible policy options for 1978; and includes twenty-four tables of statistics regarding the participants, costs, and effects of various employment, training, and assistance programs.) (EM)