This third special report of the National Commission for Manpower Policy provides information regarding the ways that European nations were dealing with complex manpower problems similar to the ones faced by the United States during the recession of 1974-1975. Following a brief introductory section, section 2 reviews the methods used by the Western European countries during the recession to maintain incomes and to help maintain job attachments. The third section examines expansionary measures employed by the industrial nations during the recession, including traditional measures, employment emphases in industry and regional policies, incentives for job creation, and active manpower policies for training and mobility. The concluding section presents twelve constructive innovations and policy tendencies observed in the recession experience to date. (EM)