(FORTUNE Magazine) – THE ECONOMY/COVER STORY 62 THE JOB DROUGHT The problem isn't too few jobs, it's too few good jobs. Solid middle-class jobs have been disappearing in record numbers as large industrial corporations slash their work forces and the long-invulnerable service sector follows suit. Millions of Americans are worried not merely about staying employed, but about staying employed in jobs that will support their current standard of living. And that's holding back the recovery. by Brian O'Reilly

MANAGING 77 A WEEK ABOARD THE WAL-MART EXPRESS Call it management by flying around. Executives like Andy Wilson spend 200 days a year on the road, nurturing the culture and gathering vital information to take home. by Bill Saporito

POLITICS & POLICY 88 HOW GEORGE BUSH CAN COME BACK Even GOP stalwarts, like the CEOs surveyed in FORTUNE's latest poll, fault his economic leadership. To win, he needs a credible long-term growth plan -- fast. by Ann Reilly Dowd

INNOVATION 99 PRODUCTS TO WATCH

TECHNOLOGY 100 PHONES THAT WILL WORK ANYWHERE Here comes the Holy Grail of telecommunications -- the universal wireless phone. Callers will reach you all over the world, even if they haven't a clue where you are. by Andrew Kupfer

CORPORATE PERFORMANCE 115 WHERE SERVICE FLIES RIGHT The impish CEO of Southwest Airlines has boosted profits in these treacherous times by championing the customer. by Richard S. Teitelbaum

116 CURE FOR COSTS: DRUGS BY MAIL Medco is revolutionizing the pharmaceutical industry with aggressive marketing of its economical mail-order pharmacy. by Brian O'Reilly

CORPORATE PERFORMANCE 133 COMPANIES TO WATCH Seattle's Starbucks is brewing heady profits with its potent java. by Richard S. Teitelbaum

EUROPE 136 EUROPE 1992: MORE UNITY THAN YOU THINK The Maastricht Treaty is in danger, and the European Community is in recession. Nevertheless, the EC's drive to create a single market is surprisingly on course. by Shawn Tully

DEPARTMENTS 4 EDITOR'S DESK Polling executives to discover business's mood. 8 INDEX 12 NEWS/TRENDS Whither the long-lived bull . . . and how low Tokyo may go, women execs back the abortion pill, Belgium's hot export, how to get an MBA while commuting, sexism in Japan, and more.

DEPARTMENTS 21 FORTUNE FORECAST Business keeps its spirits up. by Vivian Brownstein

Economic Intelligence: Labor force mysteries -- the working poor and the underground economy.

29 PERSONAL INVESTING Where to go for great yields. by Susan E. Kuhn

Also: Korean shares are a buy, stocks that could score with Clinton, and Portfolio Talk with William Dutton of Mesirow Asset Management.

59 LETTERS TO FORTUNE

145 FORTUNE PEOPLE Music and bribes in the Buffett family, CEOs' role in the food chain, and more. by Laurie Kretchmar

148 BOOKS & IDEAS This summer vacation, take along some books that pack the emotional heft -- and length -- to last more than a weekend. by Gil Schwartz

155 KEEPING UP by Daniel Seligman

THE GLOBAL SERVICE 500 208 IT WAS A VERY BAD YEAR The world's largest service companies might prefer to write off last year. Measured in dollars, profits fell 15%. The declines were greatest for commercial banks and diversified service companies. Some good news: Retailers generally did well, and profits rose at savings institutions. by Thomas J. Martin and Kevin S. Moran

211 THE 500 RANKED BY SALES The service companies, in eight categories.

227 THE 500 RANKED BY PERFORMANCE Here's where to find the good news.

234 THE 500 RANKED WITHIN COUNTRIES Where each company rates nationally, plus the headquarters city and phone number.

242 ALPHABETICAL INDEX TO THE GLOBAL SERVICE 500

ABOVE: Steelworkers being retrained as air conditioner repairmen near Philadelphia. Photo by D. W. Mellor.

COVER: A quarter of those in the work force now have low-paying jobs. Photo by Mark Hanauer (Onyx).