Key drivers of skills demand and supply in the United Kingdom

Skills imbalances are driven by structural and cyclical factors that shape the demand for and supply of skills. For instance, economic growth, changes in the composition of economic output and broad-based trends like globalisation, technological advancement and demographic change are all important macroeconomic factors influencing the demand for skills. On the other hand, the supply of skills is affected by labour market trends, migration, and skills and education outcomes. This chapter discusses the main factors influencing the demand and supply of skills in the United Kingdom, and describes the current state of skills imbalances.