Cyclical and structural issues in engineering skills formation in Great Britain were studied through a review of recent employment patterns, income patterns, employment projections, recent trends in education and training, and recent developments in technology and work organization. The review focused on the following issues: (1) the extent and nature of mismatches between the supply of and demand for engineering skills; (2) the extent to which engineering skill problems are cyclical as opposed to structural; and (3) the adequacy of current arrangements for engineering education and training. The following were among the main conclusions: (1) engineering skill problems are most apparent when they manifest in the form of external recruitment difficulties at the peak of each business cycle; (2) long-term trends in training levels and recruitment difficulties in the past 3 decades reflect structural rather than merely cyclical weaknesses in the British system of engineering training; (3) recent changes in markets and work organizations have significantly increased engineering employers' expectations of graduates; and (4) one way to expand modern apprenticeship (MA) numbers would be to develop preapprenticeship courses to prepare underqualified 16- and 17-year-olds for later entry to MA schemes. (Fourteen tables/figures are included. The bibliography lists 34 references.) (MN)