What and Why of LMI
According to the Canadian Advisory Panel on Labour Market Information, Labour Market Information is defined as the knowledge, facts, data and applicable institutional information on the supply and demand of labour. In other words, labour market information is any data – qualitative or quantitative – that pertains to the enhancement of the economy through labour market development.
In August 2009, the North Superior Workforce Planning Board released Building A Superior Workforce: 2009-2012 Labour Market Action Plan and determined that a crucial component of a superior workforce is one that has access to sufficient local labour market information. As such, this Plan established the implementation of an LMI web portal as one of its sixteen strategic actions to be carried out over the 3 year period.
The Centre for Regional Economic Competiveness confirms that timely and accurate knowledge of the local labour market provides a competitive advantage. Data combined with local intelligence helps:
- Ensure labour market strategies, actions, and investments are relevant and focused
- Offer enhanced information and understanding of current and emerging industries and opportunities, resulting in better informed decisions
- Monitor changing conditions as well as indicators to assess progress
Financially, the Canadian Advisory Panel on Labour Market Information notes that on a national level, not more than $100 million dollars is currently spent on developing labour market information each year. LMI data can make a significant impact on wages and salaries in Canada, which are currently at $800 billion a year. If LMI data can reduce unemployment or raise wages through better matching of workers and jobs by as little as one tenth of a percent, the GDP would be raised some $800 million each year! This demonstrates the importance of investing in accurate and up-to-date labour market information.
Indeed there are many reasons to have timely and accurate local labour market information. If you would like to find out more information about the importance of LMI to the Thunder Bay District, please contact the NSWPB office directly.
Source: Advisory Panel on Labour Market Information, Working Together to Build a Better Labour Market Information System for Canada: Final Report. (Released May 20, 2009)