Congress, as part of the Fiscal Year 1981 National Science Foundation Authorization Act (Public Law 96-516), called for the Director of the National Science Foundation to transmit to the Congress and certain Federal agencies a biennial statistical report on the participation of women and minorities in science and engineering employment and training. This report responds to the Congressional directive. Chapter 1, a descriptive overview of the participation of women and minorities in the natural and social sciences and engineering, highlights differences in employment patterns between women and men and between whites and racial minorities. Chapter 2 reviews a series of indicators, such as unemployment rates and salary differentials, to assess relative labor market conditions for scientists and engineers. Chapter 3 examines the acquisition of science and engineering (S/E) skills. Data are presented on the number and proportion of women and minorities earning S/E degrees and on the acquisition of mathematics and scientific skills by women and racial minorities prior to college entry. Statistics indicate that although employment of female and minority scientists and engineers increased between 1974 and 1978, women and blacks are still underrepresented than males and whites respectively. (Author/DC)