Ensuring skills are available in the right locations: are we there yet? A regional analysis of qualification gaps

ABSTRACT

Matching skills supply and demand is critical for economic growth, competitiveness and inclusiveness. Yet, measuring skills is difficult. This paper develops an approach for measuring the gap between demand and supply of skills at the local level in the UK West Midlands region. It uses qualifications as a proxy for skills. By comparing the projected supply of qualifications with the forecast demand for qualifications from occupational forecasts, the analysis reveals significant skill mismatches with potential to constrain regional growth potential. Policy implications for connecting skills, transport and housing policy as part of local industrial strategies are explored.

KEYWORDS:

• skills
• qualifications
• regional economic development
• UK
• labour market

JEL:

• H75
• J23
• J24
• R12

ACKNOWLEDGEMENTS

The authors kindly thank the anonymous referees and the editor, who were extraordinarily helpful and generous with their comments and insights.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Notes

1. The NVQ is a work-based qualification that recognizes the skills and knowledge a person needs to do a job.

2. Thus, a is the intercept of the regression line and b is the slope of the regression line.

3. See http://www.cedefop.europa.eu/en/events-and-projects/projects/forecasting-skill-demand-and-supply/.