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The National Employers Skills Survey 2003 (NESS) was commissioned by the Learning and Skills Council (LSC), in partnership with the Sector Skills Development Agency (SSDA) and the Department for Education and Skills (DfES), and involved 72,100 interviews with a representative sample of employers in England. The first part of the report examines recruitment problems, with a breakdown of data by industry and region. Reasons for hard-to-fill vacancies are discussed, with the most prevalent reason being lack of required skills. The second part of the report examines skill gaps, with a breakdown by industrial sector and region, revealing that the greatest proportion of skill gaps are ascribed to employees' lacking experience. The impact of skill gaps both internally and externally is also discussed. The data show that the most common response to internal skills deficiencies is to provide further training, with four in five employers taking this course of action. Finally, the report looks at employers' training activities, the extent of and types of training that organisations are providing, and any partnerships that have been established with local further education (FE) colleges.