Frequently Asked Questions(FAQs)
Labour Market Information (LMI) is a useful tool to help research future jobs in the local area, understand the skills needed for certain roles and the demand for future employment.
LMI helps to break down the complex ‘world of work’– ranging from descriptions of different careers, their entry routes, promotional prospects, salaries paid, skills and qualifications needed, etc. Crucially for young people, LMI also covers future demand – what kinds of jobs will be in demand after leaving school and what kinds of skills will be needed.
Understanding how the Labour market works can help employers assess how many employees to hire and how to leverage their skills to win long-term success.
Labour market information is essential for tracking and analyzing the economy of a country. National and local governments need Labour market information to reduce unemployment, generate employment, and plan training programs to meet the needs of industry.
The Labour market comprises four components: The Labour force population, applicant population, applicant pool, and the individuals selected.
There are two main factors that define the Labour market: Supply: Supply encompasses individuals who are seeking jobs. Demand: Demand consists of businesses that need Labour based on organizational changes, economic activity, and industry trends. Employees provide the supply, and employers provide the demand—understanding how these relationships work is critical in helping employers build a skilled workforce that thrives on economic change, growth, and competition.
The Labour Market has four components: workforce participation, candidate population, candidate pool, and recruited individuals.
Three key measures of Labour market activity are the unemployment rate, the Labour force participation rate, and the employment-to-population ratio.
The two types of Labour markets are internal and external. Internal markets include jobs and employees within a company. External Labour markets are all jobs and workers that are not within a single company.
At the macroeconomic level, supply and demand are influenced by domestic and international market dynamics, as well as factors such as immigration, the age of the population, and education levels. Relevant measures include unemployment, productivity, participation rates, total income, and gross domestic product (GDP).
The Labour market is measured by dividing the number of job openings by the number of unemployed people (V/U) in a particular month.