THIS REPORT, PREPARED FOR THE OFFICE OF REGIONAL ECONOMIC DEVELOPMENT, FEATURES A REVIEW OF RECENT RESEARCH ON RETRAINING AND MIGRATION AS INDEPENDENT AND INTERACTING FACTORS IN REGIONAL ECONOMIES. FINDINGS ARE ALSO RELATED TO CURRENT UNITED STATES MANPOWER POLICY AND TO RETRAINING AND RELOCATION SCHEMES IN WESTERN EUROPE. IN THE UNITED STATES, UNEMPLOYED WORKERS WILLING TO RELOCATE TEND TO BE RELATIVELY YOUNG (LARGELY MALES AGED 20-35), WITH FEW COMMUNITY TIES AND LITTLE OR NO PROPERTY, AND EITHER WELL INFORMED ON THE LABOR MARKET ELSEWHERE OR WILLING TO TAKE RISKS. RETRAINING AND RELOCATION HAVE GENERALLY PROVED HELPFUL TO SUCH WORKERS, BUT EFFECTS ON NATIONAL AND REGIONAL UNEMPLOYMENT ARE STILL INCONCLUSIVE. NEVERTHELESS, INVESTMENTS IN PHYSICAL CAPITAL APPEAR USELESS WITHOUT INVESTMENTS IN THE EDUCATION, TRAINING, AND MOBILITY OF THE LABOR FORCE. ACCORDINGLY, EXISTING PROGRAMS AND SERVICES MUST BE CLOSELY COORDINATED AT LOCAL, STATE, REGIONAL, AND FEDERAL LEVELS, AND MORE RESEARCH MUST BE CONDUCTED ON SOCIOECONOMIC BENEFITS AND COSTS, EMPLOYMENT TRENDS, AND WAYS OF MEETING THE ACUTE NEEDS OF OLDER WORKERS AND THE FUNCTIONALLY ILLITERATE. (THE DOCUMENT INCLUDES SPECIFIC CASE HISTORIES AND ACTIVITIES, AN EXTENSIVE CLASSIFIED BIBLIOGRAPHY, AND ABSTRACTS OF 50 OF THE ITEMS CITED.) (LY)