Conquering Business Challenges Through LMI

Labor Market Information (LMI) is any data or analysis that relates to the workforce. Surveys conducted through the Illinois Department of Employment Security provide data related to employees in the workforce by industry and career paths. There are specific procedures used to analyze LMI. These procedures are to describe current conditions and predict future labor supply and demand. Examples of LMI in Illinois include:

• Employment – Details the number of jobs, job gains and losses, industry sector, and location.
• Commuting Patterns – Displays county-to-county commute data, average commute times, and more.
• Wage Data – Includes industry or occupation averages of wages paid.
• Labor Force – Reveals the number of workers, labor force size, & unemployment rate.
• Trends – Shows labor market conditions, job projections by industry, and more.
• Layoff Information – Discusses information on mass layoffs and closures in the state.
• Unemployment – Includes data on people who are receiving or applying for Unemployment Insurance (UI).

Illinois' LMI also entails other data broken down by Metropolitan Statistical Areas, Economic Development Regions, Counties, and Local Workforce Innovation Areas.

How can you use LMI to answer common business needs?

Once you've gathered information, you can use it in a variety of ways. Here are a few examples to get you started. Use LMI to help with the following:

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  Recruit employees – When you are trying to fill a position, it helps to know how many people with that skill set may be available in the labor pool. In this case, use LMI to research potential employees in a geographic area.
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  Set compensation levels – Knowing the wage range for a position helps you offer an appropriate salary for new hires. Compare compensation data for similar positions and industries.
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  Plan staffing requirements – Knowing information about the local pool of candidates can help you figure out what your staffing requirements should be. For example, you could take commuting patterns and workforce characteristics into account.
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  Watch trends in your industry –
  Business Employment Dynamics lets you track the number of job openings by industry as well as gross gains and losses. You can also review
  Employment Projections to keep an eye on trends.
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  Relocate or expand – Use hiring data, wage data, and trends to guide your expansion or relocation plans.
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  Downsize or close – Use unemployment and layoff information to provide possible employment resources for displaced workers. For more information, check out Illinois workNet's Layoff Assistance Guide.
  

How can LMI improve your bottom line?

The answer is Return on Investment (ROI). Labor Market Information is a resource funded through federal and state government agencies for you to use. Business Service Representatives at your local Illinois workNet Centers can guide you to the resources that can help you and your business find the data you need to make important business decisions.

LMI Resources

If you are planning to research LMI, the best place to start is the Illinois Department of Employment Security's
LMI hub. Illinois workNet also offers several useful resources, a few of which are listed below.

Illinois Pathways is a great tool to use to get various types of labor market information including supply and demand. This can provide you with specific, updated information you can use to help you see how your business fits in and how the outlook is for careers in your industry.

• Select one of the 9 high-demand pathways.
• Select "View Careers."
• Review current and projected employment levels, average annual openings, and wage and training level descriptors.

The
Occupational Wages and Trends page provides a wealth of information that can help you determine specifics for your employment positions. For example:

• You would select a Career Cluster like Health Sciences.
• Then pick the appropriate Career Path like a Dental Hygienist.
• Once you have selected the path, the information available provides:
• Employment outlook,
• Wages and trends by geographic area,
• Knowledge, skills, and education needed to perform a job, and other information.
• This information can help you when writing job descriptions, help wanted ads and establishing competitive wages for your geographic area. 

Using the information from the above sources can give you a better picture of how LMI can help your business with current challenges and long-term decision-making.