Every day people, companies and institutions in the labour market are making choices. What education should I or my child take? Is there a quali ed workforce available in the region where our company is considering a new business? Do we need a better educated workforce to attract foreign investments? Is there a need to revise some education programmes? Do we need incentives to attract students into particular elds? People make such decisions based on information available at the moment; inevitably they act in a situation of imperfect information. Many are long-term decisions: people, institutions and companies are not preparing themselves for the current labour market but for several years in the future. Although we can never know for sure what will happen in the future, it is important to use the information we currently have to anticipate what skills will be needed.
Better understanding, and more efficient use, of LMI are among potential preventive measures to reduce the risks of skills mismatch. The aim of this publication is to provide guidance through labour market monitoring and analysis of supply and demand as follows: formulation of aims of the analysis, data audit, capacity building, performance of analysis, and dissemination and use of LMI in the context of better matching.
This guide describes relevant methods, approaches and components for interpretation of LMI as well as the conditions and the operations of the labour market. It includes various measures, recent and projected trends, and restrictions and challenges to be considered in analysing LMI.