Professional Skill Shortages

Abstract

The most highly qualified occupational group, comprising individuals who work primarily in activities involving high levels of technical and organisational skills, is focused on. It is a group which, overall, has shown remarkable growth in recent years. Certain specialisms, such as IT skills, experienced relatively buoyant labour markets which even transcended the effects of the last major recession. In the main, such skills were associated with unusual demand conditions, caused, for example, by the diffusion of microelectronics and by the changes in company organisation and management. Since the recession, specific skill shortages have been transformed into more general shortfalls. Demand for individuals with high levels of formal education and training is expected to continue growing. Supply is not expected to keep pace, a situation which will be aggravated by the downturn in the youth cohort. There are other significant events on the horizon which make the market outcome more uncertain, such as the movement to the Single European Market in 1992, although none of these factors seems likely to reverse the conclusion of persistent shortages.