Labour Market Info and Analysis Labour Market Info and Analysis Systems Port of Spain November 2011 Employment Trends I t International Labour Organization ti l L b O i ti Geneva, Switzerland Employment Trends www.ilo.org/trends
Overview • Labour Market Information and Analysis (LMIA) systems: – Definition & purpose – Components and levels – Sources of labour statistics – International examples and experience – Key Indicators of the Labour Market • LMIA system development: key steps Employment Trends www.ilo.org/trends
LMIA systems Definition and purpose I Definition and purpose I Definition A network of institutions (persons) with agreed roles to produce and with agreed roles to produce and disseminate labour market information and analysis y Employment Trends www.ilo.org/trends
LMIA systems Definition and purpose II Definition and purpose II (F1) Responsible for labour market analysis (F1) Responsible for labour market analysis • The Dutch Research Centre for Education and the Labour Market (ROA) is a research institute of the Maastricht University School of Business and M i h U i i S h l f B i d Economics. • Through its research the institute aims to improve Through its research, the institute aims to improve the understanding of the relationship between education and the labour market; see: http://www roa unimaas nl/ http://www.roa.unimaas.nl/ Employment Trends www.ilo.org/trends
LMIA systems Definition and purpose III Definition and purpose III (F2) Responsible for monitoring and (F2) Responsible for monitoring and reporting on employment and labour policies • Skills Development Planning Unit (SDPU) in South Africa’s Department of Labour; see: http://www.labour.gov.za/documents/useful- documents/skills development/useful documents/skills-development/useful- documents • Detecting skill needs and geographical mismatches (e.g. LMIA at the provincial or ( municipal level: Differences between Trinidad and Tobago) g ) Employment Trends www.ilo.org/trends
LMIA systems Definition and purpose IV Definition and purpose IV (F3) Mechanism to exchange information or (F3) Mechanism to exchange information or coordinate different actors and institutions that produce and utilise labour market information and analysis • Advisory Panel for Pakistan’s LMIA system, see http://www lmis gov pk/Publications html see http://www.lmis.gov.pk/Publications.html • For instance: Assessing labour market impact of national disasters (floods in Pakistan, ( , Thailand) Employment Trends www.ilo.org/trends
LMIA systems Components and levels I Components and levels I (C1) Collection and compilation of data and i f information ti – Database with standard set of indicators such as the ILO’s Key Indicators of the Labour Market or the ILO s Key Indicators of the Labour Market or the MDG employment indicators Employment Trends www.ilo.org/trends
LMIA systems Components and levels II Components and levels II (C2) Analytical capacity and tools at three levels: - Monitoring labour markets (SDPU South Africa) Monitoring labour markets (SDPU, South Africa) - Analyzing relationships between variables/indicators (LMIA unit, Pakistan) - Econometric models (ROA, Netherlands) Econometric models (ROA Netherlands) Employment Trends www.ilo.org/trends
LMIA systems Components and levels III Components and levels III (C3) Institutional arrangements and networks – Memorandum of understanding with statistical Memorandum of understanding with statistical agency – Agreed role of LMIA system in monitoring national development plans – LMIA Advisory Panel Employment Trends www.ilo.org/trends
LMIA systems and statistics statistics labour labour market statistics information and analysis analysis Employment Trends www.ilo.org/trends
Active and inactive population Total population Total population P Population not l ti t Population P l i of working age of working age Economically active Economically inactive population population Employed Employed Unemployed Unemployed Employment Trends www.ilo.org/trends
LMIA systems Sources of labour statistics Sources of labour statistics • Surveys of households (‘persons’) – Labour force survey Labour force survey – Population census – Income and expenditure survey • Surveys of establishments (‘companies’) – Establishment survey of production – Employment and earnings survey – Occupational employment and vacancy survey • Administrative data (‘records’) – Educational enrolment data – Migration records – Employment services records Employment Trends www.ilo.org/trends
LMIA systems Sources of labour statistics Sources of labour statistics Strengths Limitations � Sampling prevents reliable estimates for small � Sampling prevents reliable estimates for small � Comprehensive coverage of population groups � Lower quality of data on income, “sensitive” Household � Detailed questioning permits precise surveys and employer-related topics measurement of statistical concepts for � Cannot provide estimates of vacancies, short reference periods training needs, etc t i i d t � Typically poor coverage of very small and unregistered businesses � Comprehensive coverage of larger � Requires constant updating of registers (births businesses businesses and deaths) � Payroll records provide consistent and � Difficult identification of small or informal units Establishment reliable data for income and employment � High non-response rates surveys by industry � Sampling prevents reliable estimates for small � Only source for data on vacancies, groups groups t training needs, etc i i d t � Data items are limited by the information in establishment’s registers � Often poor coverage � Total count allows maximum detail Administrative � Often not up to date � Often not up to date � Inexpensive to compile statistics records � Data quality may be questionable Employment Trends www.ilo.org/trends
Strengths/limitations: implications for an LMIA system for an LMIA system • No single data source can meet all needs No single data source can meet all needs • Use all available sources as components of LMIA Use all available sources as components of LMIA system • Know the sources of statistics & be aware of strengths and limitations Employment Trends www.ilo.org/trends
LMIA systems What is not covered I What is not covered I • No information on labour market regulation and g institutions: – Minimum wages – Unionization rates Unionization rates – Employment protection legislation • No information on labour market policies – Unemployment benefits – Activation policies (training, job centers) Activation policies (training job centers) – In-work benefits Employment Trends www.ilo.org/trends
LMIA systems What is not covered II What is not covered II • No information on the macro-economic environment – GDP (and its components) – Exchange and interest rates – Financial market conditions Financial market conditions • No information subjective indicators j – Social well-being – Main needs – Perception of government activities (red tape, trust) Perception of government activities (red tape trust) Employment Trends www.ilo.org/trends
LMIA systems What is not covered III What is not covered III • Additional information is often essential to: – Analyse what factors drive employment and unemployment rates – How policy makers can influence labour market dynamics How policy makers can influence labour market dynamics – What obstacles exist for employment creation – Which areas to target for policy interventions • A need for wider data collection effort and collaboration – Involve research centers and other ministries Involve research centers and other ministries – Use of additional data sources (e.g. Decent Work Indicators) – Benefit from expertise of international agencies for cross- country comparisons country comparisons Employment Trends www.ilo.org/trends
Target groups & policy development Function 3 Function 1 Function 2 Information Labour Monitoring exchange and market & reporting coordination on policies analysis Component 3 Component 3 Component 1 Component 1 Component 2 Component 2 Institutional Collection & Analytical arrangements compilation of capacity and and networks data and tools information Third level LMIA system – econometric models Second level LMIA system – analyzing relationships First level LMIA system – tracking indicators First level LMIA system tracking indicators Source 1 – household surveys Source 3 – admin records Source 2 – establishment surveys Employment Trends www.ilo.org/trends
LMIA Considerations: maximizing demand from end users demand from end users • Relevance – Degree to which statistics and analysis meet users’ needs • Timeliness – Time elapsed between release of data and related reports • Punctuality – Degree to which pre-announced releases dates are met Employment Trends www.ilo.org/trends
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