Employment Sector Working Paper no. 27. Labour Market Information and Analysis for Skills Development
Determining skill needs in labour markets is one of the central tasks facing manpower planners and labour market analysts, and the development of skills policies that meet these needs are a key instrument in the promotion of the Decent Work Agenda. This paper examines the role that labour market information and analysis can play to inform skills policies, both in terms of methods, and in terms of institutional arrangements that are established to translate information into policy action.
The benefits and limitations of widely used methods and instruments for the early identification of skill needs in market economies are discussed, ranging from labour market signalling using a set of key labour market indicators to econometric models.
Several approaches to the use of these methods for policy-making are discussed, which are linked to the level and type of institutional development in economies as well as the penetration of market reform.