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Skills matter: a synthesis of research on the extent, causes, and implications of skill deficiencies

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Department for Education and Skills
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c 6 Skills Matter: A SYNTHESIS OF RESEARCH ON THE EXTENT, CAUSES, AND IMPLICATIONS OF SKILL DEFICIENCIES Skills Matter: A SYNTHESIS OF RESEARCH ON THE EXTENT, CAUSES, AND IMPLICATIONS OF SKILL DEFICIENCIES Terence Hogarth Rob Wilson Institute of Employment Research University of Warwick Coventry CV4 7AL Tel: 02476 524420/523530 Fax: 02476 524241 e-mail [email protected] e-mail [email protected] October 2001 C O N T E N T S Page Preface iii Acknowledgements iv Glossary v Executive Summary vii 1. INTRODUCTION 1 1.1 Aims and objectives 1 1.2 Methodological approach 2 1.3 Structure of report 4 2. EXTENT AND NATURE OF SKILL DEFICIENCIES 5 2.1 Defining and measuring skill deficiencies 5 2.2 The overall extent of skill deficiencies 6 2.3 Skill-shortage vacancies 8 2.4 Skill gaps 18 2.5 Conclusion 29 3. CAUSES OF SKILL DEFICIENCIES 30 3.1 Causes of skill deficiencies 30 3.2 External causes 30 3.3 A summary of external causes 36 3.4 Internal causes of skill deficiencies 38 3.5 Product market position and skill deficiencies 40 3.6 Skill needs arising from product market strategy 47 3.7 Conclusion 52 4. IMPLICATIONS OF SKILL DEFICIENCIES 54 4.1 Introduction 54 4.2 Responding to skill deficiencies 54 4.3 Human resource strategies and skill deficiencies 59 4.4 Impact of skill deficiencies on business performance 61 4.5 Latent skill gaps 66 4.6 Conclusion 78 5. CONCLUSION 80 5.1 The extent and nature of skill deficiencies 80 5.2 Causes 82 5.3 Latent skill deficiencies 83 5.4 A final word 83 BIBLIOGRAPHY 85 ANNEX A 87 ANNEX B 89 i TA B L E S F I G U R E S M A P S Page 1.2 Case study sectors 3 2.1 Overall number of vacancies 7 2.2 Overall distribution of skill-shortage vacancies by sector and occupation 12 2.3 Skills sought in relation to skill-shortage vacancies 15 2.4 Skill related recruitment problems across sectors 17 2.5 Internal skill gaps and employee proficiency levels, analysed by occupation 21 2.6 Type of skills sought in relati

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