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This report presents the outcomes of a joint project of the Institute for Employment Studies (IES) and the Science Policy Research Unit (SPRU) for the Sector Skills Development Agency (SSDA). The project developed a range of skills indicators and calculated Total Factor Productivity (TFP) growth, which is a productivity measure that takes account of hours worked and capital input. Data was gathered for 23 sectors (plus the whole economy) across 16 OECD countries. The country specific effects were removed so that the impact of the skills indicators on TFP levels and growth at the sectoral level could be examined. The project had four main objectives: to undertake international productivity and skills analyses at a level of disaggregation as close to that of the SSDA’s Sector Matrix as possible; to provide and analyse internationally comparable productivity and skills profile data at the detailed sectoral level; to examine the inter-relationships between skills and productivity at the detailed sectoral level; and to provide inputs to the sector level skills planning process led by the Sector Skills Councils. Some key findings were that: there are large differences between sectors in terms of skill demand and utilisation; the UK has both ‘world beating’ and ‘world lagging’ sectors; UK is a sectoral rather than a national problem; intermediate and high level education are both important to maintaining TFP levels; training has a large, significant and positive impact on TFP growth; and ICT occupations have an impact beyond those sectors usually associated with ICT.