Labour market trends
| Labour market trends |
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| See also |
Labour market trends is a tendency of labour market to move in a particular direction over time. The key to create effective policies for job creation is to understand labour market trends. Global employment estimates show the potential of different regions in the world to absorb growing labour force. Unemployment rates by sex group and age allow the identification of vulnerable groups most in need of support. Similarly, estimates of poverty help target efforts to promote poverty reduction strategies more precisely[1].
Changes on the labour market
One of the major determinants of changes on the labour market is the demand for labour. Changes in the demand for labour are analyzed in the field of both changes in numbers of jobs available in the labour market and structure of skills required in the workplace. In the current rapidly changing and globalized economy there are multiple determinants of labour demand[2]:
- the business cycle and business cycle fluctuations, which influences total demand for labour and so has an effect on the structure of the economy
- global trade, internalisation of the market as well as international division of labour
- changes in domestic consumption due to growing population income ( focusing on quality products) or other changes in consumption ( for example changing age structure of population, demand for healthy products)
- focus on some sectors as a result of international needs ( e.g. on renewable energy as a result of environment protection needs)
- technological development and innovations which change the nature of jobs
Labour markets trends as the key for future changes
Labour market trends are the focus of research. Numerous explanation for differences in those trends have been put forward. Changing patterns of work commitment, innovation in organization of working time are contributing to substantial changes in the nature of work and employment. The standard job offering lifetime employment is disappearing to be replaced by the portfolio job combining self-employment, part-time jobs and home-based work. The analyses of the market trends help to establish control of the national labour market and influenced the government labour market policy. The date enables to forecast the need for skills in developing countries and requirements of the future[3].
Labour market information and analysis- LMIA
Monitoring the balance of labour demand and supply is the key for finding the trend on the employees market. Providing the information about the labour market situation results in developing the wide range of changes. The current labour market situation and development trends are analyzed over time. Labour market information can be particularly important for a huge companies considering entering a new market where they do not yet have experience. LMIA system also identifies priority issues and target groups in the labour market to evaluate and help formulate appropriate policies[4].
LMIA system has three main functions[5]:
- Collection of labour market information and household information
- Analytical tools to evaluate and understand trends and challenges
- Institutional arrangements and networks
Footnotes
References
- Breen J. W (1997)., Labor Market Politics and the Great War: The Department of Labor, the States, and the First U.S. Employment Service, 1907-1933, Kent State University Press, Kent, OH
- Ekkehard E. (2009)., Labour Market Information and Trends, International Labour Organization, Switzerland
- Joll C. (red.) (2018), Developments in Labour Market Analysis, Routledge Library Editions Labour Economics, Routledge, United Kingdom
- Řihova H. (2016)., Guide to anticipating and matching skills and jobs, Publications Office of the European Union, Luxemburg
Author: Anna Marczyk
