This report contains the strategic vision for the Department of Labor (DOL)/Employment and Training Administration's research efforts for the next five years. Section I discusses the scope of the research plan and the development process. Section II is a review of literature concerning functioning of the labor market and identification of areas needing additional research. Section III reviews recent policy changes that will affect employment and training interventions. It identifies potential research topics that would most help DOL implement the Workforce Investment Act 1998 (WIA). Section IV provides a review of recent research, evaluation, pilot, and demonstration initiatives to help implement and improve programs under WIA. It focuses on understanding effectiveness of employment and training interventions designed to aid employers, adult job seekers, youth, and disabled and other special populations. Section V examines alternative methodologies for employment and training research and their strengths and weaknesses. Section VI identifies these nine high priority research topics: understand intermediaries' role in the labor market; identify effective training strategies; develop appropriate assessment tools; evaluate and improve job retention programs and services; develop strategies to promote career advancement; identify effective support services; understand impact of self- directed employment services; improve interventions to assist the hardest-to-serve; and develop the potential of telecommuting. There is a 246-item bibliography. (YLB)