Tip Sheets

Labour Market Information: Separating the Wheat from the Chaff

Every week, we hear stories about the job situation in different industries and how some occupations are growing and others are not. The following tip will help you to interpret this labour market information and decide how much weight to give it when you are making career decisions.

Question information about the labour market. Asking one question will often lead to other questions. When you read an article about labour market trends, ask questions like:

		How will these trends impact the local economy?
		What opportunities might they create?

		What are they basing their predictions on?
		Have they taken recent events into consideration?
		Is it clear how they got from the present to the future?
		Are their predictions believable?

		Question the credibility of each source, the purpose of the information, where it came from and how conclusions were reached. For example, has the information been developed to attract investors? What other purpose might the authors have? Be very skeptical about claims that sound too good to be true like “A thousand new jobs have just become available” or “Work from the comfort of your own home.”
		Check the date to make sure information is current. Information with general time frames like “in the next few decades” and “in the future” may not be much help to you
		Check the location of sources to make sure information is relevant to your situation. Information from American sources may not apply in Canada. Look for labour market information that is relevant to where you plan to be in a few years as well as where you are now.
		Consult a number of information sources. If you are thinking about taking a training program, talk to people employed in the field. Compare what they tell you with information provided by post-secondary institutions.
		Separate occupational information from industry information. An occupation has typical duties and responsibilities that require specific knowledge and skills. An industry is a group of related workplaces. The same occupation may be required in a number of industries. For example, sales representatives and human resource managers work in many different industries.
		Interpret statistics carefully. Suppose you were presented with the following statistical information about the rates at which two occupations are growing. Which occupation do you think will have more job openings? Physiotherapists—increase of 100 per cent Plumbers—increase of 10 per cent The answer depends on the number of positions currently in place. For example, if there are 100 physiotherapists in your community, then a 100 per cent increase means that 100 new jobs will be created. If there are 1,000 plumbers in your community, then a 10 per cent increase means 100 new jobs. The number of new jobs created will be about the same in both occupations.
		Interpret salary information carefully too. Factors such as job location or the nature of the work may have a huge impact on earnings. Whether the work is seasonal or permanent makes a big difference. Emerging occupations may offer relatively high salaries when there is a skill shortage but salaries may level off as skilled labour becomes available. Also consider regional differences. Wages are often a lot higher in communities that are booming but the cost of living in those communities may also be higher.
		Always check how a list was produced. Top 100 lists or lists of industries by size are often based on revenue, not employment. Publicly funded organizations such as government and education institutions are considered not-for-profit and would not make a Top 100 list based on revenue. Yet they are the largest employers in some communities.
		Find out where forecasted work opportunities are likely to be located. Some specialized types of work are only available in locations such as large urban centres or remote locations.

Be careful, but don’t be so critical that you end up questioning everything. Even labour market information with shortcomings may have some useful nuggets of information. It could lead you in a new direction.

Other Relevant Tips Labour Market Information Can Change Your Life Labour Market Information on the Internet Labour Market Information: Sources For more, visit the TIPS home page at alis.alberta.ca/tips

Additional Reading Advanced Techniques for Work Search, Labour Market Information for Your Business: A practical guide and Making Sense of Labour Market Information produced by Alberta Employment and Immigration. For copies of these publications:

		download an online copy or order the publication from the Publications website at alis.alberta.ca/careershop
		call the Alberta Career Information Hotline at 1-800-661-3753 toll-free or 780-422-4266 in Edmonton
		visit your local Alberta Employment and Immigration service centre. To find the centre nearest you, call the Alberta Career Information Hotline.

Last Updated: June 15, 2006