CHAPTER II Manpower Supply and Demand

1963 was that youth would be trained for occupations (supply) for which society has a need (demand). This is based on the assumption that labor economists would project the needs of society and that vocational educa-tors would adjust their programs accordingly. The purpose of this chapter is to review the literature on manpower supply and demand to determine the extent to which this objective of the Vocational Education Act of 1963 can be achieved. Since this is the first time an entire chapter of the REVIEW has been devoted to the subject of manpower supply and demand, a general and theoretical approach will be employed at first in order to illustrate some of the major issues, followed by a more detailed summary of research in the subject area. Manpower Policies Education may be considered either as an investment good or as a consumption good. It is the former which is more relevant to manpower policy on the assumption that education can increase the economic well-being of society. One of the objectives of manpower policy is to remove the discrepancies between the supply of and demand for manpower with a minimum of lost income and production. Bombach (1965) discussed the philosophy behind manpower forecasts and concluded that there are several similarities between education and infrastructural investment. Levitan and Mangum (1967) discussed present-day manpower policy, its achievements and failures in the past, and its prospects for the future. They recommended a unification and coordination of operating agencies. Harbison (1964) defined manpower policy as a combination of employment policy (aimed at providing employment oppor-tunities for all those willing and able to work), human resources develop-ment policy (designed to increase the skills, knowledge, and capabilities of the labor force), and manpower allocation policy (specifically aimed at matching men and jobs). It is the human resources development policy which is essentially concerned with education and training. Harbison, pointing out that relatively little research work has gone into studies o