The General Accounting Office examined existing and anticipated concerns related to the recruitment and retention of nurse and nurses aides. Special attention was paid to the following aspects of the problem: (1) factors contributing to the current and anticipated shortage among nurses; (2) what is known about the current and projected supply of nurse aides and the factors contributing to the current and anticipated shortage; and (3) government and private efforts to improve recruitment and retention of nurse aides. The following were among the main conclusions: (1) demographic and job satisfaction factors could worsen the shortage of nurses; (2) demographic changes, low compensation, and difficult working conditions are contributing to the shortage of nurse aides; and (3) state government and private sector initiatives are seeking to address nurse aide retention and recruitment, although few initiatives have been evaluated. Additional evaluation was deemed necessary to determine which state government and private sectors initiatives have been most effective in alleviating shortages of nurses and nurse aides. More detailed data were also called for to delineate the extent and nature of nurse and nurse aide shortages to assist in planning and targeting corrective efforts. (Contains 10 tables.) (MN)