An economic assessment of skill gaps on firm productivity – November 2017

economics-of-education||106education||0labour-market-economics||106
Sector: Economics of Education | Education | Labour market economics
Published: 27 November, 2017
Document type: Presentation 
Tagged: 2017 economics of education quantitative analysis

London Economics has undertaken research for Filtered, an online training platform, providing comprehensive insight into employer demand for skills driven by skills gaps. Using the 2015 wave of the Employer Skills Survey (ESS), we found that skills gaps have a significant effect on a number of business outcomes, including losing business to competitors, delaying development, and increasing operating costs. The magnitude of the impact increases with the severity of the skills gap. Furthermore, all types of skills gaps have a statistically significant impact on business outcomes. In particular, reading and understanding consistently appears as one of the strongest drivers of negative firm outcomes. The full presentation is available through the link above.