By Pablo Burriel-Llombart and Jonathan Thomas
This paper examines the evolution of skill imbalances in the UK labour market over the past two decades. A rise in skill imbalances is defined as an increase in the difficulty of recruiting skilled workers compared with unskilled workers. Our investigation is primarily motivated by the observation that different balance indicators often send conflicting messages. These differences could reflect several factors, including the underlying definitions of skilled and unskilled workers, and the sensitivity of each measure to different types of labour market shock.