5.2 Combining methods and data to create labour market intelligence

Combining methods and data to create labour market intelligence

The term “labour market information” is being replaced by “labour market intelligence” (LMI), reflecting the value generated by the combinaiton of new and conventional sources of data and analytics. Much-needed interoperability between information sub-systems is gaining traction, but technical and non-technical obstacles will continue to require collaboration and sharing of good practise.

LMI counts now on new sources of large volumes of data, complementing the conventional statistical sources: web data from online job boards / portals and anonymysed administrative data from public registers. This diversification of sources of data enables refined, detailed, geo-localised and real-time intelligence on dimensions of skills and occupations that could not be captured before the advent of web data (Big Data) and new analytics. This digital transformation of LMI is also responsible for the emergeance of digital platforms for dissemination of data, intelligence and guidance services on careers, jobs and skills.

Transforming information on skills into evidence for decision-making

Cedefop, Skills Panorama

“Considering building a house? Well, before taking any action you have to map your needs and wishes and take several decisions: decide on the type of house, the right dimensions, suitable combinations and placement of materials – even colours can make a difference. 

But to move from having even the best materials and designs to a solid construction that will meet your requirements, specialists are needed to put things together. The materials to be used, for example, should accommodate your needs, be reliable to ensure stability and sustainability of the construction, and meet regulatory standards. Specialists’ expertise is needed to combine materials, and it is their knowledge about how to best use tools and techniques that will lead to a solid construction. 

In essence, developing “skills intelligence” has many similarities to building a house. Quantitative and qualitative data on skills and the labour market are the necessary building blocks to facilitate the work and decisions of various ‘inhabitants of the construction’ (for example policy makers, social partners, local VET providers, career counsellors and learners). But these groups have different information needs and vary in terms of their understanding of key concepts or experience in using and ‘translating’ data so that it becomes useful in their context. It is the role of experts to identify information requirements, use appropriate data, tools and techniques, and develop tailor-made solutions to present the outcomes so that they meet user needs.”