Making local labour markets work: A Scottish case study

With the launch of Employment Training (ET) in 1988 there has been increasing interest in providing training that is closely tied to the demands of the labour market. The establishment of ET came about because of a concern that unemployment was still very high at a time when large numbers of jobs were being created. Part of the explanation for this apparent paradox was that the unemployed lacked the motivation and skills to get jobs. The solution, as proposed by ET, was to provide counseling and training (Department of Employment, 1988). Insofar as this recognised that factors other than a lack of skills stopped the unemployed getting work it was to be welcomed. However there are other things that need to be taken account of if labour markets are to work effectively (Haughton and Peck, 1989). Many of these are outside of the control of the unemployed.