Introduction to the Labour Market

•Concepts & terminology•Availability & limitations

2

LABOUR MARKET & LABOUR MARKET INFO

What is a labour market?“…is defined as the informal mechanism where

the demand and supply of labour interact…”

What is labour market information (LMI)?“…material and data about the supply and

demand for labour within a certain market…”

3

POPULATIONS WITHIN THE LABOUR MARKET

The Economically Active PopulationWho makes up the economically active population?

Percentage of the working age population economically active by region, 2003

68

70

72

74

76

78

80

82

84

East EastMidlands

London NorthEast

NorthWest

SouthEast

SouthWest

WestMidlands

Yorkshire& The

Humber

Perc

enta

ge (%

)

Source: ONS, LFS, NOMIS data service, 2005.

England

4

POPULATIONS WITHIN THE LABOUR MARKET

The Employed Population• Full-time, part-time, self-employment, permanent

& seasonal employment.

Working age employment rate by region, 2002 & 2003

6264666870727476788082

East EastMidlands

London NorthEast

NorthWest

SouthEast

SouthWest

WestMidlands

Yorkshire& The

Humber

Empl

oym

ent r

ate

2002 2003 England average (02 & 03)

5

EMPLOYED POPULATION

Where are people employed?• Labour market information classified into

occupations (SOC) and industries (SIC)

6

EMPLOYED POPULATION

0 5 10 15 20 25

Agriculture

Mining & quarrying

Manufacturing

Utilities

Construction

Wholesale/retail

Hotels & restaurants

Transport & comms.

Financial intermediation

Real estate & business

Public admin

Education

Health & social w ork

Personal services

Percentage of employment

England South West

Employment by industry, South West & England, 2003

7

EMPLOYED POPULATION

Employment by occupation, South West & England, 2003

8

EMPLOYED POPULATION

Sector Skills Councils (SSCs)

Four key goals, to:1. Reduce skills gaps & shortages2. Improve productivity, business & public service

performance3. Increase opportunities to boost the skills &

productivity of everyone in the sector’s workforce

4. Improve learning supply including apprenticeships, higher education & National Occupational Standards (NOS)

9

EMPLOYED POPULATION

RDA Priority Sectors

Established regional sectors:• Aerospace, ICT, Food & Drink, Marine and

Tourism.Emerging regional sectors:• Creative industries, Biotechnology and

Environmental technologies.

10

EMPLOYED POPULATION

Learning & Skills Council

Six additional regional priorities:• Construction, Health & social care, Retail, Engineering

sectors and the Public sector.

11

UNEMPLOYED POPULATION

How is unemployment measured?

• ILO unemployment• Claimant unemployment

What is the economically inactivepopulation?

12

TRENDS IN THE LABOUR MARKET

How about trends in the labour market?

• Political & economic factors• Innovations in technology & effects of

globalisation• Demographic changes• Sectoral changes

13

EXERCISE

Discussion:

• Do you use LMI and if so why?

• Why might LMI be important in you role as a skills broker?

(about 10 mins)