Career Information -Labour Market Information

Introduction

By definition, the labour market is the arena in which employees and employers interact. Employers compete to hire the best people, while workers compete to secure the most satisfying and rewarding jobs. The labour market can also be understood as the demand and supply of labour.

Is there a difference between the labour market and the labour force?

The labour force refers to the active population of employed and unemployed people, where unemployed people are actively seeking work and are available to start immediately.

Statistics South Africa reported that around 2.2 million people lost their jobs during the first half of 2020, and that around 18.1 million people between the ages of 16 and 65 were not employed or not economically active during that period. This reflects both the scale of job losses and the number of people outside the labour force altogether during the pandemic. As unemployment figures are updated regularly, CDPs should always check Statistics South Africa's most recent releases for current figures rather than relying on older data.

The job market is constantly changing, so it is essential to understand the demand for unskilled, semi-skilled and skilled labour within it. As the world becomes more reliant on technology, demand for unskilled labour is steadily declining.

Understanding the types of labour

Unskilled labour. This refers to workers with little or no formal education, who do not possess a particular specialised skill. This kind of work does not typically require independent judgement and often involves physical exertion or manual labour. As mentioned, unskilled labour jobs are increasingly threatened by the introduction of technology, and these workers will need to upskill to remain employed.

Semi-skilled labour. People in this category possess more skill than unskilled labour but typically hold a matric certificate rather than a university degree. Examples of such professions include security guards, waiters, taxi drivers and truck drivers. These workers often have transferable skills that can be used in other jobs.

Skilled labour. Skilled labour refers to people with specialised training and skills, who are required to exercise judgement and have in-depth knowledge of their industry. Skilled labour usually requires a degree. Examples include lawyers, financial advisers, nurses, electricians and engineers.

With an understanding of the different types of labour in South Africa, practitioners can discuss this with learners. Due to the changing nature of the job market, learners will have to make choices accordingly. As practitioners work with people from all walks of life, they are likely to encounter clients in unskilled labour and will need to provide information on career pathing or upskilling. People seeking to invest in a career benefit from understanding labour market trends before deciding whether their chosen career offers long-term prospects.

What is labour market information, and how do we use it?

Labour market information deals with the supply and demand, earnings, employment and unemployment figures, and demographics of the workforce, alongside the broader job outlook. In South Africa, Statistics South Africa and the Department of Employment and Labour collect and analyse data relating to the labour market. As CDPs, having access to this information is essential — learners in the exploration phase of their career journey will find labour market information especially valuable.

CDPs can help learners find answers to questions such as:

1. Which industries employ people in the occupation of their choice?

2. Which province offers more prospects in this field?

3. What are the prospects of securing work immediately after qualifying?

4. What scarce skills are needed in the country?

5. How much can a new graduate expect to earn?

6. How many people are currently employed in this profession?

As mentioned, labour market information gives the reader a broad view of employment in a region or country. This information can be used to determine:

1. Which industries are hiring, and where.

2. Which provinces need workers.

3. Which skills are being sought by employers, and the education needed to acquire them.

4. Whether specific jobs are easy or difficult to find.

5. A forecast of which jobs are likely to be in demand in future.

You might have heard about companies downsizing or hiring — this is a direct result of supply and demand within the wider economy. Information is also often acquired informally, from family, friends and acquaintances, when people become newly hired or retrenched.

Factors affecting the job market

The labour or job market is affected by many factors, not a single isolated one. The following play a considerable role:

Demographics. This refers to the traits of a particular population, such as average age, education levels and population growth rate.

Technological change. Technological advancement is unavoidable, as it helps companies work more efficiently and productively. It leads to improved products and service delivery, but it can also affect employment by leading to either more employment or more unemployment, depending on the sector.

Local, provincial and national economic conditions. Economic conditions within the country have one of the most significant impacts on employment, as the strength of specific industries changes the overall employment rate.

Industry or sector activity. This refers to changes in growth and job outlook across South Africa's major industries, including manufacturing, wholesale and retail trade, financial services, transport, mining, agriculture and tourism.

Globalisation. Globalisation refers to companies that operate across the world and around the clock — call centres are one example. Globalisation opens up new opportunities for markets, goods and services. Practitioners can direct the following questions to learners interested in globalisation and the opportunities it offers:

- How will globalisation influence the field or industry you wish to study?

- How much experience do you have working with other cultures?

- What languages do you speak?

Computer and online skills. Computer skills are becoming essential, as more employers expect employees to be computer literate, including on mobile devices and tablets.

Having labour market information helps a client make more informed decisions about their career path.

Choosing an occupation

CDPs are advised to share facts about the labour market with learners, since employment is a significant commitment — for many, it also represents a considerable financial investment. CDPs can share information about jobs in demand, long-term and short-term employment prospects, the average salary payable, and what a typical day in the role looks like.

Identifying training and education programmes

This provides information on the skills employers are looking for, and the institutions that provide the necessary training. Sometimes job seekers can find out about "hidden" opportunities that are not formally advertised, through informal networking, which can help them apply for a job at a company of interest. Labour market information helps provide focus, attitude and direction for learners as they respond to trends.

Where can labour market information be found?

Government departments such as the Department of Employment and Labour (DEL) regularly publish information regarding the labour market, and newspapers also publish updates on growth or decline in specific sectors. The internet provides recent information and makes access easy. Below are a few guidelines to help learners find labour market information.

Start by reading. Learners could focus their attention on industry trends for key sectors in their province. Searching by title, industry and keyword can help refine the results.

Explore further. CDPs can point learners towards websites hosted by government departments and industry organisations that offer reliable labour market information, including:

- Statistics South Africa, a source of statistical information and analysis.

- The Department of Higher Education and Training.

- The Human Sciences Research Council.

- The Department of Employment and Labour.

- The Chamber of Commerce.

- Other reputable sources of labour market information.

- Unions and professional bodies, via their newsletters or notices.

Broaden your online search. Searching a particular website can lead to finding information on several more. Here are some handy tips for learners:

- Use keywords that relate to the labour market information needed — for example, "South Africa, graduate opportunities, civil engineering".

- Narrow the search by adding a location or specific industry to the search terms — for example, "labour market information Gauteng" or "labour market information for healthcare workers".

- Use the "help" menu on a search engine to learn more about search techniques.

- Keep the information goal in mind. Too much information can lead to overload, so learners are advised to keep their search goals in mind to avoid unnecessary detours.