The only non-western member of the Organisation for Economic Cooperation and Development presents special opportunities and difficulties for Western observers of its public policies in the areas of employment, manpower, and labor market. While Japan is clearly moving toward a more Western type of labor market, differences remain in employment practices, social policy, and industrial relations. Japan's employment system (the lifelong employment principle with steep seniority wage progression) has been compatible with a high rate of productivity growth, a remarkable stability of employment, and a very low rate of unemployment. An economic disadvantage is the restraint on occupational mobility. Prime responsibility for industrial training has traditionally been with the employers, but the government is beginning to increase public efforts toward vocational training. The Japanese experiences and planning are examined and the findings summarized in this report. It is noted that Japan is continuing toward a broadened system of recurrent, lifelong training. As they have not been tied by specific public commitments the Japanese have particular possibilities for creating new systems which may provide more labor market adaptability and freedom of choice among work, study, and retirement than in existing systems in other countries. (MF)