The productivity and skills challenge

Levels of economic performance and prosperity, whilst historically high, are below those in some other countries. Relatively low productivity is a major determinant of this economic performance and increasing skill levels can have an important function in raising productivity. It is in this area that the new Skills for Business Network of Sector Skills Councils, supported by the Sector Skills Development Agency, intends to play a key role and hopes to make a real difference. This article discusses the productivity challenge within the UK and undertakes a brief assessment of the main skills priorities for this new UK‐wide network launched in 2002. The article considers the relationship between skills and workforce development and economic performance and discusses the issues this presents for the new network. It is clear that the UK productivity and skills challenge is great, but then so is the prize.