What are the labor market and labor market information?

Labor Market:

The labor market is defined as the informal mechanism where the demand and supply of

labor interact. A labor market could be a community, a city, a region, a country or a larger

area.

Supply of labor:

The supply of labor includes all those who are either working or looking for work, that is all

those who are participating in the labor force.

Demand of labor:

Demand for labor is determined by the demand for employers' products (sometimes called

consumer demand), export demand, and government policies among other factors, all of

which are strongly inter-related. For example, an increase in the demand for construction

workers because of a major construction project will result in an increase in demand for

workers in other sectors, such as those that supply building materials, transportation and

hospitality and retail.

The labor market can experience both "shortages" and "surpluses". Typically this occurs

because of skill mismatches, immobility of the labor force and incomplete information about

both workers and employers.

Labor Market Information:

Labor Market Information (LMI) is material and data about the supply and demand for

labor within a certain labor market. LMI covers economic, social, demographic and labor

force data. It describes the characteristics of the supply of labor: the people who are

workers or potential workers in the market. It also provides information on demand: job

opportunities in the market and the needs of employers. Future needs of existing employers

and of new employers who will enter the market are also considered within LMI.

Often, a wide range of information must be collected and analysed to describe important

features of the labor market. LMI often gives historical, current and forecast information.

Different users have different information needs.

Factors influencing the labor market:

The labor market participation rate and the supply of labor are influenced by

demographics such as the number of working-age people. The conditions of the economy in

general and in the labor market, the likelihood of finding work, education levels and a host

of other variables influence the participation rate and supply of labor.