The Concept of Employability

TLDR

Employability is a key concept shaping labour market policy across the UK and EU, yet its definition varies, with many policymakers reducing it to individual skills and attributes. The study examines how employability has been applied, traces its evolution, and seeks a definition that transcends purely supply‑ or demand‑side explanations to better inform policy. The authors trace the concept’s evolution, analyze its role in UK labour market and training strategies, and propose a definition that integrates both supply‑ and demand‑side factors. They argue that a narrow focus on individual skills hollows out employability, and they propose a broad framework that incorporates individual, personal, and external factors to capture both supply and demand sides.

Abstract

The concept of 'employability' plays a crucial role in informing labour market policy in the UK, the EU and beyond. This paper analyses current and previous applications of the term and discusses its value as an exploratory concept and a framework for policy analysis. It then traces the development of the concept, discusses its role in current labour market and training strategies (with particular reference to the UK) and seeks to identify an approach to defining employability that can better inform labour market policy, by transcending explanations of employment and unemployment that focus solely on either supply-side or demand-side factors. Although the literature offers a range of definitions of 'employability', many policy-makers have recently used the term as shorthand for 'the individual's employability skills and attributes'. It is argued that this 'narrow' usage can lead to a 'hollowing out' of the concept of employability. The paper concludes by presenting a broad framework for analysing employability built around individual factors, personal circumstances and external factors, which acknowledges the importance of both supply- and demand-side factors.