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Occupational structure has changed significantly over time and further important changes are forecast by the year 1995. A substantial part of the change in occupational structure between 1971 and 1981 can be attributed to the shift in industrial structure. Despite the rising level of civilian employment in recent years, some, mainly blue‐collar occupations, continued to fall over the period 1981 to 1987. Others, however, showed significant growth (including professional, associate professional and managerial occupations), caused by both the changing occupational structure withinindustries and the changing industry mix. Such changes are likely to persist, bolstered by the continued expansion of the economy. The article reviews the possible extent of skill shortages in the nine main occupational groups. Shortages seem likely amongst managers and administrators,professional occupations and associate professional and technical occupations. They also appear to be persisting amongst craft and skilled manual workers despite declining levels of employment in this group. However, skill shortages seem much less likely amongst clerical and secretarial, personal and protective services,sales occupations, plant and machine operatives and other occupations.

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