Three sections of information are presented in this report on employment and unemployment. Section 1 discusses how the concepts of employment, unemployment, and the labor force are defined and measured. Included in the discussion is an explanation of the current population survey. Section 2 examines the principal trends and cyclical movements of the past two to three decades. Topics include the following: population, labor force, participation rate; the employment rate and the employment-population ratio; disaggregation by principal age-sex groups; analysis of unemployment in the 1954 and 1975 recessions; and anatomy of unemployment in good and bad times. Finally, the third section on policies and proposals focuses upon three questions: what can be done about unemployment; what the full employment-unemployment rate is; and how long it will take to get the unemployment rate down to five percent. (JH)