The authors review what is known about the relationship between education and employment and what is not known but should be. Having decided that education does not mean only schools and colleges, nor employment only work for pay, they concentrate on nine areas: (1) "Where We Stand"; (2) Present and Future Labor Market Realities; (3) Youths' Problems in the Labor Markets; (4) Consequences of Schooling; (5) Work-Education Programs; (6) Career Guidance; (7) Learning Needs of Adults; (8) Employment and Training Programs; and (9) Occupational Licensure. Chapter 10 offers the action-oriented recommendations on areas where more knowledge and action are needed, such as basic skills development, work experience program improvement, development of more comprehensive and systematic guidance and counseling services, finding ways to finance and encourage recurrent education, and attention to the education and employment needs of "outsiders" in society. Appendix A spells out both research, experimentation, and policy recommendations and the priority ratings given these. Appendix B summarizes areas of agreement and disagreement between this and three related reports published in 1975 (on "Manpower" by Ginzberg, "Education and Working Life" by an OECD Task Force, and "A Prospectus for an Education-Work Policy" by Wirtz), none of which contains a thorough assessment of knowledge and research needs, according to the authors. Appendix C presents basic information on federal expenditures for education, training, and employment. (CP)