ABSTRACT
The global economy is entering a new phase, and the paradigm of economic growth of the post-war decades no longer holds sway. The political implications of the trends will take some time to play out. Some observers have suggested that the economic policy functions of local and regional institutions will be substantially affected by the reemergence of strong subnational regional economies. Firm and industry restructuring clearly has an effect on the mix of skills used by workers. The skills in rising demand can be grouped loosely into the following three categories: technical and specialized skills, conceptual skills, and communications skills. In the services, the need for technical skills is somewhat different and is most apparent among middle- and some higher-level professionals. US service firms appear to have been, on average, more successful than most manufacturing firms in integrating training with broader organizational changes.
