This report includes annual reports from both the Department of Labor on employment and training requirements, resources, and utilization and the Department of Health, Education, and Welfare on facilities utilization and employment and training program coordination. First is a description of the current administration's five basic labor market policy objectives. Then chapter 1 examines employment, unemployment, and labor force participation trends of the past calendar year (1977). Chapter 2 reviews the Department of Labor's activities during fiscal year 1977, with emphasis on programs mandated by the Comprehensive Employment and Training Act (CETA) of 1973. Also reviewed are the President's economic stimulus package, special target group programs, Work Incentive Program (WIN), apprenticeship programs, employment services, unemployment compensation, and food stamps. The next two chapters focus on special employment problems of youth and middle-aged and older persons. Youth Employment and Demonstration Projects Act (YEDPA) goals are summarized, and the differing participation trends between men and women in the labor force are viewed in light of recent income security legislative initiatives. Chapter 5 examines the labor market impacts made by immigrants since the late 19th century, especially since 1965. In chapter 6 the employment opportunity component of the administration's welfare reform proposal is reviewed. Two special reports and statistical data are appended. (BM)