1. Globalisation continues to pose both threats and opportunities. The threat is the loss of key markets and jobs to emerging economies. But this is just one side of the coin: as domestic markets around the world become more open to competition, immense opportunities present themselves for producers here to increase their market for goods and services.

2. Where the global economy poses the greatest threat is in relation to low-skilled jobs, often located in the production of low-cost, standard commodity-type goods and services. While some of these are immune to global competition at present, this cannot be guaranteed over the long term. Moreover, some – possibly many – will be displaced by technology in the long run.

3. Entering new markets, and sustaining a presence there, is dependent upon the efficient production of goods and services, especially those of high value. England will find it increasingly difficult to compete with low-cost producers of commodities from countries such as China and India. The research evidence points squarely to the production of high-value goods and services being dependent upon a highly skilled workforce.

4. If the country is to retain and capture high-value markets around the world, many employers need to raise their game and to increase their demand for skills. They need to raise demand at all levels: from senior management, responsible for the strategic vision of the organisation, to those engaged in more routine day-to-day activities.

5. Skills cannot be considered in isolation, and nor are they a panacea. They are one element that needs to be in place in the overall strategy of a business. Accordingly, they need to be placed at the heart of an organisation’s business plan. Otherwise skills will not be effectively deployed.

6. If employers’ demands for skills are to be raised, the supply side needs to be able to respond. The supply of skills has to recognise the need for an economic focus. The learning and competence required to achieve a given qualification should benefit the economy over the medium to long term.

7. This poses a number of challenges for the qualification system. In particular, the economic value of vocational qualifications needs to be increased. The rate of return for those investing in vocational skills remains, on balance, less than in the case of academic skills. The status of the vocational route through further and higher education needs to be improved.

8. A world economy that is even more open to international trade requires a vocational education and training system that is agile and that provides individuals with the core skills that will allow them to develop their human capital, at any age, so that they are able to sustain their employability. This is important, given the changes that will be wrought on the labour market by increased global competition and by developments in information and communication technology. This places an emphasis on lifelong learning and the acquisition of new skills over the lifecycle.

9. Tackling social exclusion from a skills perspective will require not only tackling individuals’ basic skills needs, but also providing people with the skills that will allow them to sustain and even progress in their employment. This is a formidable challenge for the education and training system.

10. Advice and guidance on career development and skills needs will be increasingly important in assisting people to navigate their way through what is likely to prove to be a rapidly changing labour market. This will continue to require robust and timely labour market information, including prospects for the future.