.png)
.png)
.png)
.png)
Key Approaches to Labor Market Assessment:
An Interactive Guide
Module 3: Supply of Skills
Tools and approaches in this section help the user understand the current state of an economy’s human capital, how it is changing, and how (and how well) it is being utilized. Jump to the full Module 3.
Why are these tools and approaches important?
If the goal of a labor market assessment is to understand how a given labor market is functioning, we must also understand the nature of labor supply in an economy and seek to answer the following questions:
- Which sectors and occupations account for what share of employment?
- In what industries, jobs, and types of employment (part-time, informal) are youth (or other populations of interest) more likely to be working?
- Are workers’ skills well-matched to their current jobs, or to open positions?
- Are individuals unemployed or out of the labor market because they are holding out for better wages or jobs?
- Are jobs seekers geographically present in the areas with relevant job vacancies, or are they mobile?
[[asset:image:10396 {"mode":"full","align":"","field_asset_image_copyright":[],"field_asset_image_description":[]}]]
Approach 3a: Education Stock and Flows Diagram
This tool allows the viewer to instantly visualize the composition of a labor market in terms of educational attainment and age. The diagram helps stakeholders learn how young people are moving through the education system, estimate the number of youth in various levels of education and in the labor pool, understand changes in the workforce over time, and gain insights into future trends in the labor market. Jump to the full Approach 3a.
[[asset:image:10435 {"mode":"full","align":"","field_asset_image_copyright":[],"field_asset_image_description":[]}]]
Source: FHI 360, Kenya Youth Assessment, pp. 18-19. Calculated using data from Kenya National Bureau of Statistics—2009 Population Census; 2013 Statistical Abstract; 2014 Economic Survey.
Why is this tool important?
The Education Stocks and Flows Diagram allows stakeholders, policymakers, and implementers to better understand the profiles of key educational segments of the population and how these are likely to change in the future, namely, which populations are the largest and/or growing the fastest in terms of educational attainment. This information can then be used to plan forward-looking education and workforce development programs to target specific groups.
How do I use this tool?
The data behind the education stock and flow diagram is mainly calculated from educational attainment statistics and enrollment data by grade. To create this type of graphic, you will need data typically available from the country’s Ministry of Education and/or national statistics agency, or the UNESCO Institute of Statistics. You will need enrollment data over several years, preferably consecutive years leading up to the most recent year available. If you wanted to include information on the labor force status of each group of youth as well, you can obtain data from the International Labour Organization’s School to Work Transition Surveys. Learn more about how to read and create an education stock and flow diagram.
Where can I find more information on this tool?
The following sources provide background on the history of stock-and-flow analysis and more information on how to use it in combination with other tools to understand and model system behavior:
Meadows, D. H., & Wright, D. (2008). Thinking in systems: A primer. Chelsea Green Publishing.
Williams, B., & Hummelbrunner, R. (2010). Systems concepts in action: a practitioner’s toolkit. Stanford University Press.
Where can I find additional approaches and tools to understand the supply of skills?
Information on current offerings and students is often available through the UNESCO Institute for Statistics. Cross-country skills surveys do exist: the OECD’s Programme for the International Assessment of Adult Competencies (PIAAC) covers individuals aged 16–65 in 40 (mostly high-income) countries, and “measures the key cognitive and workplace skills needed for individuals to participate in society and for economies to prosper.” The World Bank’s STEP Skills Measurement Program has measured skills on the same scale as PIAAC in a number of low- and middle-income countries.44
However, in many countries, information on the quality of current educational offerings and the relevance of existing skills must be collected through a qualitative research process, including, for example, surveys, interviews, and focus groups with both current and potential future members of the workforce, as well as employers, a critical step for any LMA. Sample focus group discussion guides for employed and unemployed youth can be find here.