This fifteenth special report of the National Commission for Manpower Policy examines the interplay between the forces determining work schedules and the incidence and prevalence of unemployment. In the first chapter the author sets forth the major trends in hours of work and in the changing structure of the labor force that has led increasingly to families in which both spouses hold jobs. Chapter 2 focuses on how firms are likely to respond to changes in the demand for their products, both in periods of expansion and contraction, by altering their employment and hours of scheduling. Chapter 3 discusses existing public policies that influence the employment decisions of firms, including payroll taxes, fringe benefit policies, overtime legislation, and minimum wages. The fourth chapter discusses the potential influence of unemployment insurance, social security, private pension systems, and government fiscal policy on the labor supply. The sixth chapter briefly discusses jobs for the hard to employ labor force. The concluding chapter makes six policy recommendations to decrease the unemployment rate by encouraging a reduction in the hours of work and identifies areas where further research is needed. Cost calculations of reducing work hours and increasing the number of jobs are appended. (EM)