Labor is the largest single cost element in all forms of transport. The skilled work force is also a major asset which makes possible the conduct of a vital and complicated business. Growth of competition among transport technologies, the growth of private and unregulated transport, and the uneven impact of public policy have put regulated carriers of all types under severe pressure. With freight rates controlled by competition and with wage rates and prices rising, extreme pressure to economize on labor and to devote available funds to cost-reducing developments has persisted for many years. Carrier types, especially the railroads, which have felt the combined impact of adverse government policy and the sharpening of competition have reduced their work forces drastically. Peculiarly difficult problems face them and their workers. To the extent that some types of transport have been overstimulated by public policy while others have been held back, similar maladjustments in the size of the labor force committed to each have been brought about. Movement toward a more rational system will require painful adjustment which should not be ignored in adjusting governmental policy.