Although the unemployment level for psychologists has been modest in the past decade, the proliferation of graduate training programs has dramatically increased the number of psychologists. Changes in the health care system over the past decade have resulted in diminished manpower needs in other health professions such as dentistry and medicine. Cost containment reform will likely reduce the need for psychology work force as well, particularly because the majority of psychologists currently enter applied areas. Psychology has already surpassed earlier projected levels of labor force need. The growing number of psychologists in an era of rising consciousness about costs and accountability within the health care system suggests a critical need to evaluate future work force needs and to regulate accordingly the number of graduate students being trained.