This review article examines the growing literature on the changing employm
ent practices of small and medium-sized manufacturers. Specifically, the au
thors examine the literature in three areas: (a) hiring practices, (b) empl
oyment security and retention, and (c) career ladders. Observers disagree a
bout the extent to which restructuring has taken place in smaller firms, th
e nature of workplace change, and the impact of this change on employees an
d firms. The policy arena is just as contentious; a host of different strat
egies have been proposed to provide employment opportunities in manufacturi
ng, particularly for low-income populations. By synthesizing the research t
o date and evaluating the key debates in this area, this literature review
will assist economic development researchers and practitioners in making th
e leap to workforce issues.