Labour Market Trends, Skill Needs and the Ageing of the Workforce: A Challenge for Employability?

Abstract

This paper addresses the key policy question of whether labour market trends, skill needs and the ageing of the workforce together pose a challenge for employability. Based on a simple descriptive review of selected key data sources, it outlines key labour market trends in the UK, with particular emphasis on the changing industrial and occupational profile of employment, before highlighting the implications of these changes for skill needs. In particular, the growing importance of computing skills, customer care skills and team-working skills is emphasised. Against this background, the role of demography, alongside changes in participation, in influencing workforce size is outlined. It is stressed that ageing is an issue for all age groups – not merely for older workers. However, it is pointed out that retirements are a key factor in changing labour demand, serving to create new job openings in declining sectors. It is concluded that changing labour market trends and the intensification of skills pose challenges for all workers, and especially older workers, in terms of upgrading their skills throughout their working lives.