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This publication gives an overview of the series of policy initiatives over the past fifteen years in the United Kingdom (UK) advocating the development of employability skills by young and unemployed people. Both employer organisations and government departments have been involved in developing these initiatives. The 'key skills' focus has been on three areas: effective communication including writing skills; numeracy; and the use of information technology. Skills defined as 'wider key skills' include: working with others; improvement of own learning and performance; and problem solving. The author suggests that there is a growing interest in exploring the demands of a knowledge-based economy for firms and individuals and in redefining employability in a new economy by highlighting the values of such qualities as lateral thinking, horizontal networking, reflective learning, problem solving, self-management and multi-disciplinary teamwork.