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This text examines the role of public skills policy from a new perspective. It starts by challenging the lack of a systematic analysis of the link between skills utilisation and business strategy, and provides a new model for fresh thinking. It extends this theoretical analysis to examine the implications for the sectoral approach to skills development as a more effective form of public skills policy

The paper attempts to link theoretical ideas concerning the relation of agency and structure with empirical research on the transition from school to work. In particular, some of the propositions of structuration theory are assessed in terms of their applicability to empirical research which investigates the impact of individual and structural variables on movement into the labour market, and the way the variables combine to determine entry into labour market segments. The data suggests that structural and individual factors are influential at all levels of the occupational hierarchy, but that the strength of influence varies at different points in the hierarchy. This supports the axiom of structuration theory which asserts that structure and activity are deeply implicated in each other in the process of social reproduction. However, the data further suggests the `duality of structure' principle has to be considerably modified in order to apprehend phenomena such as labour market processes. In this respect we believe that structure and action variables have to be viewed as loci of powers rooted in partly independent ontological domains but which interpenetrate each other in specific empirical areas at particular points in time and space.