In recent times the ambit of skills policy has broadened. The recent preoccupation with supply side issues (e.g. increasing the number of citizens with higher level qualifications), in particular, is being questioned. Demand side matters (e.g. how employers develop and use skills) are now increasingly recognised as being of equal significance. This paper addresses two questions: 1) How can skills demand and skills utilisation be best measured at the local level? 2) What efforts to improve skills utilisation at the local and regional level have been undertaken in OECD countries in recent times?