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It is recognised that in recent years there has been a widening gap, both in terms of numbers employed and wage levels, between low skill and high skill occupations. Globalisation and technological change are the most frequently cited reasons for this increasing inequality. This paper attempts to decompose the changes in labour demand into those due to globalisation and those due to technological change. It is found that the major causes of changes in employment differ between industries. However, overall both globalisation and technological change have increased the demand for high skilled labour at the expense of low and medium skilled labour. The policy implications of these results are discussed.