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The issue of "scarce skills" has become a key government priority. It is now generally accepted that skills shortages in key occupational areas are hindering future economic growth. Since the development of the original Scarce Skills list in 2003, the SETAs have enhanced their capacity and they can more accurately identify the nature of skills requirements in their sector. Using SETA data, the Department of Labour has developed a more comprehensive methodology for identifying Scarce Skills, based on the clustering of SETAs according to their business functions and common areas of economic activity.

Key skills and occupational positions difficult to fill were identified, along with more generic skill capabilities in short supply. If the skill/occupation was classified as "in high demand", it would then be identified as a "scarce skill".