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This report is part of a skills review undertaken for the United Kingdom (UK) Department for Education and Employment (DfEE) by the Institute for Employment Studies (IES). The program of research explored the changing nature of skill requirements within occupations, training and recruitment, and other issues relevant to each occupation. This report outlines the findings of the study of the skills required in two areas of the caring sector: pre-school childcare and elder care. The report outlines the aims, objectives and methodology of the study and provides a discussion of the role and structure of childcare and elder care occupations and the pressures for change, the skills that employers say are required for these occupations and how these skills are changing, recruitment sources and criteria, skill shortages, training and development issues, and conclusions.