The focus of the Peer Review will be on the different actions Wales carries out to: gather intelligence on the current and future needs of the labour market, the current and future supply and quality of provision of education and training; and identifies the gaps and where supply needs to be improved.

Data is collected at national and regional level in Wales which is collated into a National Assessment for Learning and Skills. Information is also collected systematically from Sector Skills Councils (see below), other employer bodies, satisfaction surveys of individuals involved in education or training (or not).

This Assessment influences priorities for the Welsh Assembly Government in education and skills. It also informs Wales’ National Planning and Funding System (NPFS) for education and training provision across Wales.

Three Future Skills Wales surveys have been carried out (1998, 2003 and 2005) which provide reliable information on skills deficiencies (soft skills such as communication, as well as sector-specific skills) encountered by businesses and by individuals. The data is used to help government planners, education providers and the Sectors Skills Councils to match the supply and demand of skilled workers. It also helps learning providers such as colleges to design and deliver courses for those skills most needed in the different parts of Wales.

25 Sector Skills Councils (SSCs) have been introduced in the UK to better articulate the needs of sectors and thus to improve training provision and the supply of workers.  They are employer-led and act as a forum for employers to articulate the skills needs of their sector. They share four goals:

• to reduce skills gaps and shortages
• improve productivity, business and public service performance
• increase opportunities to boost the skills and productivity of everyone in the sector's workforce
• improve learning supply including apprenticeships, higher education and National Occupational Standards (NOS).

A Learning and Skills Observatory is the vehicle through which Wales presents this intelligence. Data can be interrogated by government planners, schools, colleges, employers and other organisations to help them understand and meet education and training needs and demands on a regional and Wales-wide level.