Recruiting and Labor Market

 Recruiting and Labor Market

What is labor market?

The labor market, also known as the job market, refers to the supply of and demand for labor, in which employees provide the supply and employers provide the demand. It is a major element of any economy and is intricately linked to markets for capital, goods, and services.

Strategic Recruiting and HR Planning

It is essential that recruiting be treated as a part of strategic HR planning because it is a key mechanism for filling positions necessary to get the work done. Recruiting requires an employer to:

 • Know the industry and where to successfully recruit qualified employees. 

 • Identify keys to success in the labor market, including competitors’ recruiting efforts. 

 • Cultivate relationships with sources of prospective employees.  

 • Promote the “company brand” so that the employer is known as a good place to work.

Component of Labor Market

The labor market constitute four components: the labor force population, applicant population, applicant pool, and the individuals selected.

1. Labor force population

The labor force population or labor force participation refers to the number of individuals who are available to work in a labor market. It considers all workers who are offering their skills and services for employment regardless of the industry they are in.

2. Applicant population

The second component is the applicant population which refers to the people who are applying for a particular job that suits their knowledge and skills. Recruiters look first at the labor market and then look next for individuals who meet the skills and qualifications set for a particular job. For example, the people looking for IT, graphics design, and similar jobs belong to the same applicant population, which is targeted by recruiters looking for this type of professional.

3. Applicant pool

The third component is the applicant pool, which is the actual number of people who originally signified their interest in applying for a particular job by sending in their resume. It may very well be considered the first part of the selection process where the recruitment department of a specific organization receives applications and screens them to determine who advances to the next round of screening.

4. Individuals selected

The fourth component is the individuals selected, which simply means the individual or individuals who’ve made it through the screening process and have been appoint for the job. Of course, this is judged based on a number of factors, and the person is screened against a carefully determined set of qualifications.

Labor market information (LMI)

A labor market information is a network of institutions, people and data that have mutually recognized roles, agreements and functions with respect to the production, storage, dissemination and use of labor market related information and results in order to maximize the possible for relevant and applicable policy and programmed formulation and execution.

Reference

Kenton, W. (2020). Labor Market. [online] Investopedia. Available at: https://www.investopedia.com/terms/l/labor-market.asp.

Malm, F.T. (1954). Recruiting Patterns and the Functioning of Labor Markets. Industrial and Labor Relations Review, 7(4), p.507. doi:https://doi.org/10.2307/2519101.

Recruiting and Labor Markets. (n.d.). Available at: https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/Human%20Resource%20Management%2013th%20Edition%20(2010)/Chapter%206%20-%20Recruiting%20and%20Labor%20Markets.pdf.

CFI Team (2022). Labor Market. [online] Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/economics/labor-market/.

Labour Market Information. (n.d.). Labour Market Information. [online] Available at: https://www.gov.nl.ca/labourmarketinformation/#:~:text=Labour%20Market%20Information%2C%20or%20LMI [Accessed 10 Apr. 2023].

ILOSTAT. (n.d.). Labour market information systems (LMIS). [online] Available at: https://ilostat.ilo.org/resources/labour-market-information-systems/.