It is increasingly recognized that manpower planning and policies are a major component of a country's development efforts. The purpose of this study is to examine the labor market in Jordan and to identify the main determinants of employment (labor force) during the period from 1961 to 1987 in order to advise policy makers as to the best course of action to achieve full employment. This period was divided into two periods: 1961 to 1972 and 1973 to 1987 for comparative purposes. The socio-economic and political framework of the labor market, as well as the labor policies during the period were examined in an effort to determine the determinants affecting the labor market in the two periods. The findings of this study reveal that Jordan's labor market and policies over the last three decades have been influenced by changes and events not only in Jordan, but by changes and events in the entire region. The study also indicates that factors influencing the labor market differ under different conditions. The impact of the independent variables tested in this study differ between the two periods, 1961 to 1972 and 1973 to 1987. Policy which may serve the country's best interest during the time of instability and crisis may not be in the country's best interest in time of stability and peace.