Labour Market Information

Transcription

1 Our third annual Building Connections event Labour Market Information 101 FOR EMPLOYERS OttawaEmploymentHub.ca This program is funded in part by the Government of Canada and the Government of Ontario

2 We will discuss: What is LMI? What is LMI? Three key things to understand Occupations Industries Factors How employers and service providers can use LMI Recognizing common LMI challenges Where to find LMI Walking through Ottawa this Quarter 1

3 What does LMI stand for? LMI as a acronym refers to both: Labour Market Information Information on the supply of, and demand for, labour (the labour market) Can be quantitative or qualitative data Labour Market Intelligence Comes out of the interpretation and analysis of labour market information Helps answer the so what? that arises out of labour market information 2

4 What is the labour market Labour Market 101 A market is a term in economics that refers to any place where things are bought and sold Labour is one of these commodities Markets have two components or sides: The supply side refers to those looking to sell (employees, job seekers, entrepreneurs) The demand side refers to those looking to buy (employers or clients) 3

5 A definition for LMI Canada s Forum of Labour Market Ministers defines LMI broadly as: the information needed by individuals and organizations to make informed decisions about the labour market. Ottawa Employment Hub uses the term LMI to mean: both information and intelligence on labour supply and demand. 4

6 Key LMI Components Demographics Population Geography Labour force statistics Labour pool Employment and unemployment Nature of employment Skills & Education Labour supply LMI is comprised of both numbers and news Where the jobs are Industries Business Counts Online job ads What the jobs are Occupations and wages Skills and education required Who is available Graduation rates Active job seekers Keep an eye on key factors and emerging trends 5

7 LMI is not perfect What LMI isn t The Forum of Labour Market Ministers research: the labour market is so complex and everchanging that it is almost impossible to ever capture or define it Ottawa Employment Hub s role is to locate the best available information and caution users appropriately How you use it depends on what decisions you are informing 6

8 Use LMI I want to make a decision Why you should understand LMI Understand what LMI is LMI can be misleading Know where to find it HIGH Assess risk of getting it wrong Decide what LMI to use Short-term forecasts & reliable sources What kind of decision are you making? No LMI LOW Longer-term forecasts & more sources 7

9 What LMI isn t Labour market forecasts are never a sure thing; forecasts do NOT predict the future You CANNOT exactly predict which qualifications will be most in demand or which occupations will have the highest number of jobs You CAN, however, use what information there is available to help you make a set of informed choices and to give you a better idea of where the path you take might lead Recent data on what % of a job can be automated is an interesting lense to use 8

10 Two lenses for looking at jobs Occupations WHAT SOMEONE DOES Defined by specific work roles and responsibilities When we think of someone s job, we typically think of their occupation (e.g. computer network technician) An occupation might be found in a number of different industries or sectors Industries/Sectors WHERE SOMEONE WORKS Defined by type of activity (good/service being produced) at a place of work A computer network technician might work in the healthcare sector (e.g. for a hospital) A computer network technician could also work in the education sector (e.g. for a college) SKILLS is an emerging third lens that MAGNET will inform 9

11 Occupations (NOC codes) 2011 National Occupation Classification (NOC) Groups occupations according to: the type of work performed (i.e., the skill type) type and length of education/training required to perform the job (i.e., the skill level) Occupations are assigned a 4-digit NOC code that can be used to identify the occupation for statistical or informational purposes Computer network technician 10

12 Breaking down a NOC code Computer network technician NOC 2281 FIRST DIGIT: Skill type (type of work performed) 2 - Natural and Applied Sciences and Related Occupations SECOND DIGIT: Skill level (length of education/ training required) e.g., this level is used in Express Entry 2 or 3 - Skill Level B (Technical, Paraprofessional and Skilled Occupations) Generally require college or apprenticeship training First two digits = Major Occupation Group 11

13 Breaking down a NOC code Computer network technician So far, we have Major Occupation Group NOC Technical occupations related to natural and applied sciences The first three digits represent the Minor Group 228 Technical occupations in computer and information systems Adding the last digit identifies the unit group the occupation 2243 = Computer network technician 12

14 Industry Structure (NAICS) North American Industry Classification System (NAICS) (Canada, Mexico, and United States ) Defined by the type of activity (primary good/ service being produced/provided) Innovation, Science and Economic Development Canada (ISED) outlines the NAICS hierarchy: sectors (two-digit code) subsectors (three-digit code) industry groups (four-digit code) industries (five-digit code) 13

15 Industry Sectors 11 Agriculture, forestry, fishing and hunting 21 Mining, quarrying, and oil and gas extraction 22 Utilities 23 Construction Manufacturing 41 Wholesale trade Retail trade Transportation and warehousing 51 Information and cultural industries 52 Finance and insurance 53 Real estate and rental and leasing 54 Professional, scientific and technical services 55 Management of companies and enterprises 56 Administrative and support, waste management and remediation services 61 Educational services 62 Health care and social assistance 71 Arts, entertainment and recreation 72 Accommodation and food services 81 Other services (except public administration) 91 Public administration 14

16 Factors affecting the labour market Economic-Political (e.g., labour laws; government policies) Demographic (e.g., aging populations) Social (e.g., green technologies; use of contractors) Climate (e.g., weather events, global warming) Technological Innovation (e.g., driverless vehicles; knowledge workers) Occupation/Industry Structure (e.g., changes in certification requirements; growth of industries) Education and Training (e.g., lags between shifts in demand and ability to train; can create areas with too many or too few workers with certain skills) 15

17 Common challenges with LMI There can be discrepancies between different sources of information Ottawa-Gatineau, City of Ottawa, Ottawa Census Sub-Division, Ottawa Census Metropolitan Area Sector Councils and other groups are often reporting data in a way that best supports their cause Projections are not always accurate Remember all of the factors that affect the labour market Making longer-term forecasts can be especially challenging Numbers do not always tell the full story Single events can be mistaken for trends 16

18 Why forecasts are challenging FLLM Example: FORECAST A graph may show a large number or percentage of openings for electricians in one province, based on upcoming expected retirements and an expected boom in construction. REACTION & REALITY Educational institutions may increase the number of students they take into their programs Electricians may migrate to that province for the work Immigrants may be brought over to fill the expected gap There may be an economic downturn that prevents older workers from retiring POTENTIAL RESULT - Within three years there may be an oversupply of electricians. 17

19 Getting the most out of LMI Develop a base understanding of LMI terms and concepts Strive to know what you are looking at: What is the source of the material? (i.e., is it well-respected, is it considered neutral) When was the data collected? (e.g., a report published in 2016 could be using data from 2011) Try to understand exactly what information you are accessing (e.g., wage data often does not include self-employed people) Always try to place numbers in their appropriate context Explore the origins of statements about the future so that you can apply an appropriate grain of salt When in doubt, contact us to see if we can help! 18

20 Studies show employers use LMI Ekos Research (2008) is the most recent comprehensive research on LMI use by employers in Canada Most employers are facing human resources issues and challenges that LMI could help them to address LMI use is already quite high amongst employers in three key areas of HR: recruitment and hiring training and development workforce development 19

21 How employers can use LMI HR planning, recruitment and retention: predict future human resource needs determine fair/ competitive wage rates identify sources of labour determine training needs assess retention efforts write more effective job descriptions and ads Strategic/business planning: inform expansion plans find new markets for services Marketing campaigns: target markets more precisely 20

22 Where to find LMI LMI can be found in many different places, including informal (conversations with friends, job advertisements, etc.) and formal sources Canada Job Bank Ontario Job Trends and Outlook City of Ottawa information Labour Market Ottawa portal 21