Understanding and Using Labor Market Information
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This document provides an introduction to labor market information (LMI) including trends, tools, and resources. It defines LMI as describing how a labor market functions in terms of available jobs and people with skills to fill them. LMI helps with career and job search decisions. Types of LMI include general labor force data, industry information, and occupational information. Issues with LMI include accuracy, timeliness, and usability. Emerging workplace trends like technology changes and globalization are transforming how LMI is used for career planning and job searching. The "new normal" requires evaluating skills demand rather than just occupations and considering multiple income streams. LMI tools profiled include sources from the Bureau of Labor Statistics, CareerOneStop
Understanding and Using Labor Market Information
- 1. Introduction to Labor Market Information (LMI) Trends, Tools and Resources
- 2. What is Labor Market Information? Interaction between individuals competing for jobs and employers competing for workers, usually in a particular geographic region. Describes how a particular labor market is functioning: What jobs are available? People with requisite skills/experience to fill those jobs?
- 3. Why Should We Care About LMI? Helps staff and job seekers make better decisions about career preparation. Helps job seekers and job developers identify industries/occupations to target in the job search. Job developers need to become “industry experts” in order to work effectively with employers.
- 4. Types of LMI General LMI Labor force information Unemployment rate Industry Information Occupational Information
- 5. Potential LMI Issues Accuracy Timeliness Usability
- 6. General Trends Workplace/Economic Trends and Implications for Career Planning and Job Search
- 7. Technology Changes Smart Systems and digitized work Automation/Self Service “Just-in-Time” scheduling software Artificial intelligence Virtual Reality The “Internet of Things”
- 8. Global Labor Market Companies moving jobs to where labor is cheapest. Average Chinese factory workers works 12 hours/day and makes $1.36/hour. Between 2000 and 2005, 150 million educated workers joined global workforce—same as entire US workforce.
- 13. Implications For Career Planning and Job Search
- 14. Traditional View of LMI Industries/occupations are reasonably linear, stable and predictable Pace of change is slow, so we can anticipate and respond to changes We can predict: Available work Required skills Career paths Focus on FT, permanent jobs
- 15. Traditional LMI Questions Demand Wages Working Conditions Preparation Advancement
- 16. New Normal for LMI Industries/occupations are more chaotic, less linear and stable. Pace of change is rapid—requires ongoing learning and re-tooling. More focus on demand “skills,” rather than demand occupations Career lattices rather than career ladders/paths “Advancement” through lateral moves, skill development and new combos of skills Micro-enterprise opportunities
- 17. New LMI Questions How will technology impact this occupation? Automate the job? Change skill requirements? Make it cheaper to outsource to another country? What skills are in demand? How can skills be re-combined to add new value? How do I keep learning and adapting to stay ahead of changes? How can I create multiple income streams?
- 18. Understand Jobs Differently Fungible Jobs Anchored Jobs Value-Add Jobs
- 19. Fungible Jobs Easily digitized Don’t require face-to-face interaction or human intervention Rely on “rules” and minimal independent decision-making Can be partially or completely automated through smart systems, RFID technology, artificial intelligence etc.
- 20. Fungible jobs will be. . . Automated Self-service Outsourced to a country where labor is cheaper
- 21. Anchored Jobs Must be performed in particular geographic location Anchored 1—Low skill/low wage Bus driver Daycare worker Anchored 2—Higher skill/higher wage Nurse There can be fungible parts of anchored jobs!
- 22. “Value-Add” Jobs Depth/breadth of skill—Super Generalists and Super Specialists Constant change High levels of interaction, creativity and non- rules-based decision-making. High technological proficiency
- 23. Career Planning for the New Normal Evaluate occupations and Focus on developing industries for “fungibility.” “value-add” skills and experiences. Monitor impact of technology and other Think “multiple income workplace trends. streams” Prepare for Anchored Tier 2 Think ongoing career and Value-Add Jobs planning and life-long employability.
- 24. Implications for the people you work with?
- 25. NJ LMI Latest Data from June 2012
- 29. New Jersey Counties Unemployment Rates - June 2012 (Preliminary, Not Seasonally Adjusted) SUSSEX 9.4% PASSAIC 11.7% BERGEN WARREN 8.9% 8% MORRIS 7.8% ESSEX 11.6% HUDSON 11.4% UNION 10.3% HUNTERDON 7.7% SOMERSET 8.3% Unemployment Rates 7.7% - 8.3% MIDDLESEX 9.5% 8.8% - 9.7% MERCER MONMOUTH 8.8% 10.3% - 10.9% 9.3% 11.2% - 11.7% 12.8% - 14.0% BURLINGTON OCEAN 9.7% 10.5% CAMDEN 11.3% GLOUCESTER 10.9% SALEM 11.2% ATLANTIC 12.8% CUMBERLAND ² 14% CAPE MAY 10.3% Data Source: Local Area Unemployment Statistics (LAUS) Prepared by: New Jersey Department of Labor and Workforce Development Bureau of Labor Market Information 0 12.5 25 50 Miles July 2012
- 30. New Jersey Counties Unemployed Residents - June 2012 (Preliminary, Not Seasonally Adjusted) SUSSEX 8,000 PASSAIC 29,000 BERGEN WARREN 43,200 4,800 MORRIS 21,700 ESSEX 43,400 HUDSON 36,300 UNION HUNTERDON 28,800 5,600 SOMERSET 15,100 Unemployed Residents 3,500 - 8,000 MIDDLESEX 42,400 10,200 - 15,100 MERCER MONMOUTH 18,400 17,500 - 23,800 31,200 28,500 - 31,200 36,300 - 43,400 BURLINGTON OCEAN 23,800 28,500 CAMDEN 30,600 GLOUCESTER 17,500 SALEM 3,500 ATLANTIC 18,500 CUMBERLAND 10,200 CAPE MAY 7,000 Data Source: Local Area Unemployment Statistics (LAUS) Prepared by: New Jersey Department of Labor and Workforce Development Bureau of Labor Market Information 0 12.5 25 50 Miles June 2012
- 32. Key Industry Clusters account for two thirds of all employment & wages statewide Industry Cluster Employment and Wages: 2010 Annual* Annual Averages* Total* Percent of Total* Industry Cluster Establishments Employment Wages Wages Employment Wages Advanced Manufacturing 3,431 124,012 $95,925 $11,895,844,365 4.0% 6.8% Health Care 21,307 420,862 $50,772 $21,368,037,945 13.4% 12.2% Financial Services 12,570 185,471 $104,418 $19,366,470,513 5.9% 11.1% Technology 25,780 313,164 $100,074 $31,339,672,580 10.0% 17.9% Transportation, Logistics and Distribution 25,985 354,618 $64,914 $23,019,845,572 11.3% 13.2% Leisure, Hospitality and Retail 55,677 767,518 $26,709 $20,499,694,337 24.5% 11.7% Biopharmaceutical & Life Science 3,145 122,729 $114,765 $14,084,934,866 3.9% 8.1% All Cluster Industries 142,992 2,083,205 $56,909 $118,553,953,666 66.5% 67.9% All Industries, NJ 261,483 3,133,821 $55,742 $174,686,813,420 100.0% 100.0% Note: Industry Cluster componet industries are not mutually exclusive and do not include all New Jersey industry sectors. Therefore the sum of industy cluster annual averages will not equal statewide averages. Sum of industry cluster percentages of totals will not equal 100 percent. Source: New Jersey Department of Labor & Workforce Development, Quarterly Census of Employment & Wages (QCEW) 2010 Annual Averages Prepared by: NJLWD, Division of Labor Market & Demographic Research, Bureau of Labor Market Information, November 2011
- 33. Established to focus on the specific needs of key industries in the state Purpose: Connect all stakeholders (job seekers, employers, service providers, educational institutions). Focus skill development and job search resources Help employers find workers with requisite skills/experience
- 34. Key Industry Sectors Life Sciences (Biotechnology/Pharmaceutical) Transportation/Logistics/Distribution Finance Services Advanced Manufacturing Health Care Entertainment, Arts, Retail, Leisure and Hospitality Technology/Entrepreneurship
- 35. 2010 Employment and Projected Growth By Industry Sector
- 36. Industry Sectors with the Largest Projected Employment Growth
- 37. Occupations with the Largest Projected Employment Growth
- 38. Implications for the people you work with?
- 39. LMI Resources and Tools
- 40. Sources of LMI Bureau of Labor Statistics (BLS)---www.bls.gov Career One Stop—www.careeronestop.org NJ Department of Labor and Workforce Development--http://lwd.dol.state.nj.us/
- 41. BLS National information Occupational Outlook Handbook --http://bls.gov/ooh/ Occupational Outlook Quarterly-- http://bls.gov/opub/ooq/ Career Guide to Industries-- http://bls.gov/ooh/about/career-guide-to- industries.htm
- 42. Career One Stop National site for One Stop Career Center system Can explore careers, wage and salary info, connect to education and training, etc. Job search resources Connect to local One Stop Career Centers
- 43. NJ LWD Real Time Jobs in Demand Industry/Regional Focus Reports Labor Market Field Analysts Occupation Explorer
- 47. Mynextmove.org
- 48. Skills Profiler
- 49. NJ Next Stop
- 50. NJCAN
- 51. How can you use with the people you work with?
Editor's Notes
- #6: Accuracy—many LMI resources depend on employers posting job openings, but not all job openings are posted. Increasingly, they are using online job postings, but not all employers post openings online Timeliness—pay attention to how current the LMI data is. Frequently government sources are at least a few months behind. Usability—a lot of LMI is confusing to read and understand and not particularly helpful for advising people. Look for resources that make it easier to use LMI.
- #7: Before we look at the NJ LMI trends, look at general economic and workplace trends that impact career planning and job search.
- #8: All of these are reducing or eliminating need for workers and/or profoundly changing the nature of jobs.
- #10: From McKinsey report: http://www.mckinsey.com/Insights/MGI/Research/Labor_Markets/An_economy_that_works_for_US_job_creation Companies are outsourcing work to contractors; they are hiring people to work part-time or “just-in-time”—as needed. Driven by technology improvements and costs—especially for healthcare. Employers don’t want full-time, permanent employees because of healthcare costs and also UI benefits. Their rates go up when they have to lay people off and people collect unemployment. Want a more flexible workforce.
- #13: Although illegal in NJ to advertise this way, this is the mindset of many employers—will simply screen out those people who don’t have recent work history when they are doing the resume screen.
- #15: Technology and globalization causes this
- #19: Technology and globalization causes this
- #20: What is “fungible” continues to expand as technology improves
- #28: Participation rate is the number of NJ residents, age 16-65 who are actively working or seeking work.
- #30: Unemployment rate
- #31: # of people who are unemployed
- #42: Bureau of Labor Statistics (BLS) is a good source of general occupational information. Publish the online Occupational Outlook Handbook, which provides descriptions of occupations, as well as videos. Occupational Outlook Quarterly focuses on key industries and occupations and gives more detailed information. Career Guide to Industries provides national level information on key industries—the occupations they employ, general outlook and trends for those industries, etc.
- #44: Real Time Jobs in Demand “spiders” job search sites all over the web and LWD analysts create Top 50 Occupations lists based on these results. Industry focus reports provide information on NJ’s key industries Regional Focus reports provide information on the employment landscape in NJ’s 3 key regions Contact Labor Market Field Analysts for more detailed information on your region. The Occupation Explorer lets you get some basic info on occupations, along with wage and employment projections by county.
- #45: Real Time Jobs in Demand “spiders” job search sites all over the web and LWD analysts create Top 50 Occupations lists based on these results. Industry focus reports provide information on NJ’s key industries Regional Focus reports provide information on the employment landscape in NJ’s 3 key regions Contact Labor Market Field Analysts for more detailed information on your region. The Occupation Explorer lets you get some basic info on occupations, along with wage and employment projections by county.
- #46: Through the Employability Check-up, can look at how well prepared you currently are for specific jobs in specific industries in your geographic area. Answer the questions and it will give you pluses/minuses for your situation. May have to do multiple searches, though, because information is very specific on occupations and industries.
- #47: Part of Career One Stop—helps people make career transitions—match previous occupations to potential new occupations.
- #48: Primarily for students or people who haven’t worked.
- #49: Use to create list of your skills and then match with potential occupations. Fairly general skill matching, but can be a good place to start for some people, especially those with limited work experience.
- #50: Use to create list of your skills and then match with potential occupations. Fairly general skill matching, but can be a good place to start for some people, especially those with limited work experience.