This publication contains An Employment Policy to Fight Recession and Inflation--the policy statement of the National Council on Employment Policy--and three background papers by individual members. The statement addresses these topics: Will the Recession End Inflation?, Which Anti-Recession Measures?, But What About Inflation?, and A Policy of Restrained Recovery. The first background paper is The Need for a Contingent Countercyclical PSE (Public Service Employment) Program. It contains a brief policy review, discusses the rationale for and merits of PSE, and lists steps that need to be taken. Employment Policy for Recessions, the second paper, addresses questions that are being neglected. It looks at the critiques employment policy in the 1973-75 recession and reaches some policy conclusions. The third paper, Getting at Fundamentals in the FY (Fiscal Year) 81 Budget, reexamines basic forces underlying the current economic situation. It considers the basic causes--inflation and unemployment--and proposes a solution involving reduced dependence on foreign energy sources, restrained total expenditures, increased productivity and production, and equitable sharing of the inevitably reduced standard of living. (YLB)