Skills Shortages: Concepts, Measurement and Policy Responses

Abstract

"Understanding the different concepts and causes of skills shortages is important if sound policies are to be developed in the areas of employment, education, training and skill formation. This paper outlines different perspectives of skills shortages held by economists, employers and unions. It then discusses the measurement and identification issues and provides an example illustrating the practical difficulties of assessing skill shortages. A number of policy options to deal with skills shortages are also discussed.