1.
What is Labor Market Information?
Labor market information includes
all quantitative and qualitative
facts related to labor markets.
Summary statistics are included,
as are demographics; employment;
unemployment, and vacancy rates;
industry data; occupational statistics;
summary reports on outcomes; and
forecasts of future trends (see
Table 1). A common thread running
through all LMI is that it must
be timely, accurate consistent,
and relevant to labor-market activity.
Development of these data also requires
adequate funding, reliable data
gathering systems, and proper statistical
methodologies. In addition to quantitative
data, LMI should include qualitative
information based on expert judgments
of local LMI analysts and other
informed sources. Combined with
evidence from quantitative data,
these can support well-informed
decisions. In fact, expert judgment
and contacts within local communities
often provide the most timely LMI.
For example, mass layoff survey
data are often incomplete. But,
combined with phone calls to the
human resource directors involved,
the data yield a picture ofshort-term
labor market trends. Such an assessment
could not be performed from analysis
of quantitative data alone. Analysis
and interpretation turn raw data
on labor market activity into usable
intelligence for decision making.
2.
Who uses LMI and why
An effective LMI system is demand
driven. Figure 1 displays LMI flows
between
originators and users of information.
Consumers of LMI make up a diverse
community, and each has specific
needs that LMI originators must
address. These
consumers and their needs include
the following types: Ø Job seekers
making both short and long-term
career development decisions, e.g.,
whether to attend college or community
college or enlisting some other
skills training; Ø Employers making
decisions pertaining to recruiting,
business expansion, relocation,
employee skill development, and
employee compensation; Ø Education
and training institutions planning,
implementing, and evaluating programs,
curricula, and career guidance to
meet the needs of both job seekers
and employers; and Ø Government
officials making policy regarding
funding, design, and operation of
public programs.
In addition, LMI is used by labor
market intermediaries, including
public employment offices, private
employment agencies, counseling
services in educational and training
institutions, economic development
planners, human resources specialists,
and consultants. Many analyses created
from LMI are relatively simple yet
valuable: descriptions of trends
over time; comparisons across geographic
regions, industries, occupations,
and skills; narrative analysis tailored
to specific applications; and graphical
representations of information.
More sophisticated formal analyses
convert masses of data into useful
labor market intelligence. A particular
area beneficial to job seekers,
employers, educators, and policymakers
is forecasting occupational demand
and levels and trends in local area
unemployment. In the United States,
both of these estimates are produced
under the direction of the Bureau
of Labor Statistics in cooperation
with state LMI experts.
