Skills policy in the UK

Resource summary

This factsheet was last updated in July 2012.

What do we mean by ‘skills’ and why are they important?

The UK’s prosperity depends on how many people are in work and how productive these people are in the workplace. Skills, and how they are used, are a key determinant of labour productivity. Increases in skills levels thus translate into higher productive and prosperity for the UK economy. Higher overall skills levels and also lead to greater social cohesion.

For individuals, skills are important for their employment and earning potential as this is dependent on skills levels, for instance employment rates for the least qualified have fallen almost every year from 1992. Skills are also associated with a range of non-financial benefits such as improved health and wellbeing. For further information on the value of skills, see the UK Commission for Employment and Skills (UKCES) report on the value of skills¹.

In order to improve the UK’s skills profile it is not enough to focus on initial education and training. On the contrary, almost two thirds of the 2020 work force is already at work, so continuing workforce training and development, adult training and vocational training are more important than ever to the UK’s prosperity.

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• What do we mean by ‘skills’ and why are they important?

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