Drivers of skills demand and supply

The supply of and demand for skills are shaped by both structural and cyclical factors, each affecting the five countries being studied in different ways. For instance, economic growth, changes in the composition of economic output over time and the so-called megatrends are all important macroeconomic factors influencing the demand for skills. On the other hand, labour market trends, migration and skills and education outcomes play an important role in defining the supply of skills. These factors are briefly considered in this chapter, highlighting similarities and differences across countries.