Labour Market Reform Commission

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Labour Market Reform Commission Technology, Innovation and Productivity Committee Review of the Labour Market Information System of Jamaica REPORT of the LABOUR MARKET INFORMATION SYSTEMS (LMIS) WORKING GROUP

REVIEW AND RECOMMENDATIONS

Working Group Chair Dr. Vanesa M. Tennant [email protected]

AS OF MARCH 13, 2016

AS OF March 13, 2016

Labour Market Information System | Technology, Innovation and Productivity Committee

Working Group Membership

Dr. Vanesa M. Tennant

Chair

Ms. Sonia Jackson

Member

Mrs. Simone McKenzie

Member

Commissioner Silburn Clarke

Ex-Officio

Other Participants Mrs. Andrea Patterson-Morris Mrs. Andrea Miller-Stennett Mr. Lyndon Ford Mr. Shaine Palmer Miss Dahlia Green, Mr. Shevin Parker Mrs. Verlia Bogle

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Table of Contents Acknowledgement ................................................................................................................................... 5 Executive Summary.................................................................................................................................. 6 Introduction ............................................................................................................................................. 9 What is Labour Market Information Systems? ........................................................................................ 9 Stakeholders of LMIS.......................................................................................................................... 10 Role of LMIS........................................................................................................................................ 11 The Impact of LMIS on Productivity ...................................................................................................... 11 History of Jamaica’s LMIS .................................................................................................................... 13 Goals and Objective of this document ................................................................................................. 14 Review of Jamaica’s Labour Market Information System ......................................................................... 16 Labour Market Information and Intelligence ........................................................................................ 16 Gap 1: There is lack of communication , coordination and trust among LMIS stakeholders with regards to sharing of information between some institutions, especially in government ................................. 19 Gap 2: Limited Synergies between educational institutions/training agencies and the LMIS ............... 21 Gap 3- Inability to combine information from various sources into a Single/Common System ............. 22 Gap 4: There is no established format standard for data that is shared .............................................. 25 Gap 5: Limited capacity and instruments to effectively and regularly collect, process, ........................ 25 analyze and disseminate relevant and reliable LMI ........................................................................... 25 Gap 6: Lack of Income Data............................................................................................................. 29 Gap 7: Limited Registration of Skills (in the Skills Bank) .................................................................... 29 Gap 8 : Limited Registration of Vacancies by Employers ................................................................... 30 Gap 9: Lack of linkage with placement agencies involved in overseas employment ............................ 30 Gap 10: Inability to capture information on un-registration and informality in the labour market ........ 32 Recommendations .................................................................................................................................. 37 Establish Ministry of Labour and Social Security as the single lead institution for driving forward the development of the LMIS..................................................................................................................... 37 Information/data flows from multiple sources is integrated in a common information system ................ 39 Increase capacity and instruments to effectively and regularly collect, process and analyse and disseminate relevant and reliable LMI.................................................................................................. 40 Conduct a programme of awareness-raising among stakeholders ......................................................... 42 The Annual Return Form from the NIS should be modified to collect additional data to enrich LMI and to assist with the collection of wage data ................................................................................................. 44

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All persons enrolled in Public Secondary, Tertiary and Vocational Institutions should register their skills with the LMI ...................................................................................................................................... 45 All public sector entities should post vacancies (active) and search for jobs via the LMIS, the Ministry of Labour and Social Security portal ........................................................................................................ 46 Vacancies must be advertised on LMIS and in print and electronic media prior to work permit application. Furthermore, an interface between the work permit and the LMIS should be developed ........................ 48 Programmes should be implemented to increase human capacity to undertake specific tasks islandwide (MIS, Employment services, career development officer, corporate communication officer, admin) ....... 50 Development of Programmes and Policies to reduce informality and lack of registration in the economy 51 Administrative Decision, Financial Implications, and Legislative Changes.............................................. 51 Appendix A: Producers of LMI in Jamaica ................................................................................................ 53 Appendix B- NIS Form ............................................................................................................................ 58 Bibliography .......................................................................................................................................... 59

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List of Tables Table 1. Examples of Selected Stakeholders and their LMI Needs ..........................................................17 Table 2. Key Labour Market Indicators .................................................................................................. 24 Table 3. Frequency of Publications ........................................................................................................ 28 Table 4 .Informal Sector Employment................................................................................................... 32 Table 5. Comparative Ages of Employed Persons ................................................................................. 33 Table 6. Educational Qualification by Highest Exam ............................................................................. 33 Table 7. Employment by Geographic Region of Residence .................................................................... 34 Table 8. – Employment by Industry Group ............................................................................................ 34 Table 9. Changing Structure of the Economy - Percentage Contribution .............................................. 35

List of Figures Figure 1. Factors Affecting the Rate and the Growth of Employment ................................................... 12 Figure 2. Components of Jamaica's Labour Market Information System ............................................... 14

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Acknowledgement As the Chair of the Technology Innovation and Productivity Committee’s Working Group on Labour Market Information Systems, I would like to thank all those who contributed to the report and provided valuable assistance along the way. The Working Group benefited from extraordinary co-operation and support during our work. Extensive consultations were done with members of the Working Group, namely Ms. Sonia Jackson and Mrs. Simone McKenzie-Mair. Also, the working group consulted with players in the LMIS - personnel from the Ministry of Labour and Social Security (MLSS) and HEART Trust NTA. Special thank you to those individuals, namely- Mrs. Andrea Patterson-Morris, Mrs. Andrea Miller-Stennett, Mr. Lyndon Ford, Mr. Shaine Palmer, Miss Dahlia Green, Mr. Shevin Parker (from MLSS) and Mrs. Verlia Bogle from the HEART Trust NTA. Also thanks to Ms. Bianca Francis from MLSS for providing secretarial support. Thank you to the team for taking the time out of your busy schedules to attend monthly meetings, and for carrying out your assigned tasks in a proficient and timely manner. The successful completion of this first draft report and recommendations for the LMIS would not have been possible without the considerable contribution of the team.

Finally, we thank the Chair of the Technology, Innovation and Productivity Committee, Commissioner Silburn Clarke, for reposing in the membership of this Working Group, the confidence of the entire Labour Market Commission to undertake this critical task.

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Executive Summary The formation of a distinct Working Group on Labour Market Information Systems emerged from a comprehensive analysis in June 2015 of Critical Issues confronting the Technology, Innovation and Productivity mandate of the Labour Market Reform agenda. The Terms of Reference for the Technology, Innovation and Productivity Committee specifically spoke to the need to examine “how can technology enable labour market information to be quickly and widely disseminated, with minimum inhibition and stickiness to the various economic actors (investors, talent- holders, policy-makers, businesses) who need it for their timely decision –making on best use of their resources” (Clarke & Goodleigh, 2015). Labour Market Information Systems serves as a single window that provides all information regarding labour market and which has capability to collect, evaluate and disseminate labour market information to all the stakeholders. It contains qualitative and quantitative information and it collects, analyzes and disseminates information that assists and empowers its stakeholder for correct planning, selection and decision making related to education, career, business requirements, training programs, job search, hiring, government policy and investment strategies. The identification of Labour Market issues critically rests on the availability of data, information and analysis. Labour Market information and analysis provide the essential basis for Employment and Labour Policy and informs the design, implementation, monitoring and evaluation of policies that are better focused and targeted in the dynamic market place. This document reviews Jamaica’s Labour Market Information Systems and provides insights on gaps and to suggest changes needed so that the LMIS can remain useful, effective and relevant to all stakeholders. The findings of the review shows that there is a need to strengthen the collection, analysis and publishing of labour market information and intelligence. In particular, the gaps identified include 1. There is lack of communication , coordination and trust among LMIS stakeholders with regards to sharing of information between some institutions, especially in government 2. Limited Synergies between educational institutions/training agencies and the LMIS 3. Inability to combine information from various sources into a Single/Common System Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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4. There is no established format standard for data that is shared 5. Limited capacity and instruments to effectively and regularly collect, process, analyze and disseminate relevant and reliable LMI 6. Lack of Income Data 7.

Limited Registration of Skills (in the Skills Bank)

8. Limited Registration of Vacancies by Employers 9. Lack of linkage with placement agencies involved in overseas employment 10. Inability to capture information on un-registration and informality in the labour market Another objective of this document is to outline the steps necessary to generate a strengthened LMIS for Jamaica. The aforementioned gaps needs to be addressed in order to better facilitate generation and use of Labour market information and intelligence to mutually enrich Jamaica’s LMIS. As such the following recommendation are put forward:

1. Establish Ministry of Labour and Social Security as the single lead institution for driving forward the development of the LMIS 2. Information/data flows from multiple sources is integrated in a common information system 3. Increase capacity and instruments to effectively and regularly collect, process and analyse and disseminate relevant and reliable LMI 4. Conduct a programme of awareness-raising among stakeholders 5. The Annual Return Form from the NIS should be modified to collect additional data to enrich LMI and to assist with the collection of wage data 6. All persons enrolled in Public Secondary, Tertiary and Vocational Institutions should register their skills with the LMIS 7. All public sector entities should post vacancies (active) and search for jobs via the LMIS, the Ministry of Labour and Social Security portal 8. Vacancies must be advertised on LMIS and in print and electronic media prior to work permit application. Furthermore, an interface between the work permit and the LMIS should be developed. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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9. Programmes should be implemented to increase human capacity to undertake specific tasks islandwide (MIS, Employment services, career development officer, corporate communication officer, admin) 10. Development of Programmes and Policies to reduce informality and lack of registration in the economy

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Introduction What is Labour Market Information Systems? There is no single exact definition for Labour Market Information System (LMIS). The International Labour Organization defines LMIS as “any information concerning the size and composition of the labour market or any part of the labour market, the way it or any part of it functions, its problems, the opportunities which may be available to it, and the employment-related intentions or aspirations of those who are part of it.” Another definition put forward is a set of institutional arrangements, procedures and mechanisms that are designed to produce labour market information. An often cited definition, which will be applied in this study, states that an LMIS includes qualitative and quantitative information and it collects, analyzes and disseminates information that assists and empowers its stakeholder for correct planning, selection and decision making related to education, career, business requirements, training programs, job search, hiring, government policy and investment strategies. As evidenced in the terminologies above, LMIS is indeed is an active labor market policy instrument that collects, evaluates and provides labor market information to both the labor supply side and the labor demand side. A comprehensive list of the various components of an LMIS include: 

Users: Policy makers and planners, education and training providers, employers, unions, community groups and civil society organizations, students and young people



Sources of signals, indicators and intelligence;



System managers, data gatherers, operators and analysts;



Labour market information (LMI) itself;



Methodology of data collection and analysis;



Equipment - computers and other hardware;



Processing software;



Means of communication, including public media;



Financial resources;



Sub-systems: training for system staff and end users, feedback and evaluation, research, development and publications

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Stakeholders of LMIS LMIS plays a main role in providing market information to various stakeholders. The LMIS should serve as the single source of information that provides qualitative and quantitative information for man-power management. Among the stakeholders are information producers who plug-in into the LMIS for proper dissemination, and they continuously provide information to keep the LMIS up-to-date and consistent. Stakeholders can play one or both roles- source of information of recipient of information from the LMIS. For instance, a students or job seeker play the role as recipients of information, while employers can play both roles – source and recipient. Below list the main multiple stakeholders:

1. Government: LMIS will help the government to make informed decisions based on changes in the labour market that impacts the economy.

2. Policy Makers and Planers: Policy makers can use information gleaned from the LMIS to introduce new policies for change that bridge the difference between the demand and supply for the workforce. Using the LMIS, policy makers and planners can monitor progress and take actions if necessary to address the identified issues.

3. Education and Training Provider: The LMIS can provide education and training institutions with details on the labour market and help them to understand the current and anticipated demand for a particular skill(s). This in turn can aid them to align course offerings with the needs of the market.

4. Unions: The LMIS can provide unions with information such as current average wage rates, productivity for particular occupations in different sectors and the number of work permits. Such information can be used by the union for bargaining purposes.

5. NGO’s and Community Groups: The LMIS can inform NGO’s and Community Groups of the labour market condition, so that they can provide the needed support to the affected stakeholders.

6. Employers: The LMIS can offer timely, updated and accurate information about the labour market, which can help them to make new plans for ongoing operations such as replacement of employers and new business investment.

7. Student and Job Seeker: LMIS can equip students with information to guide their short and long-term decisions as it relates to education and training requirements that align with current Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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and future occupational projections. Job seekers can be provided with information on job opportunities and skill level requirement via the LMIS.

8. Guidance and Career Counsellors: LMIS should serve as a link between the student/job seeker and the guidance and career counsellors, which the ultimate goal of providing individuals with informed and appropriate guidance in selecting career paths and understanding the job market.

Role of LMIS As economies become more developed and complex and more integrated with the global economy, there is an increasing need for a functional, effective and efficient LMIS. The LMIS provides information on how labor markets function, including job opportunities and employment- related intentions and aspirations, which can be exceptionally useful for addressing the mismatch between labor supply and demands. The implementation of a LMIS can be is aimed at the following strategic targets: 

nationwide transparency concerning supply and demand on the markets for labor and vocational training,



Fast access to job offers and job requests, acceleration of the matching process by fast access to job offers and job requests for both employers and job-searchers



Development and application of solutions to support labor market functions

The Impact of LMIS on Productivity A functional Labor Market Information Systems is essentials as it serves as the concrete basis for the early and accurate identification of skills needs within a county and also for analyzing labor market and skill development policies. This is turn can promote productive employment and sustainable development, hence adding value, by way of the information produced, to the stakeholders in the market. For example, by informing groups such as students, unemployed and workers about new professions and the required skills, the labor supply side is informed about the changing landscape and requirements. The LMIS should also provide information about vocational training possibilities and qualification programs, counseling to help individuals to find out their individual professional profile so that they may align professions according to their skills and preferences. The above can in turn impact work satisfaction, labor turnover, productivity and the reduction of unemployment.

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Furthermore, the LMIS can improve information flows on the labor market to key stakeholders, which can employers and job-seekers make informed decisions about the productive use of labor and to be informed about labour market trends which they can use to adjust individual goals and aspirations to the realities of the job markets. Also, as an economy continues to grow, develop and become more integrated into the global economy, it is essential to improve and expand labor statistics and information for decision-making in key areas of macroeconomic policy- making, such as trade, investment and technology. Figure 1 provides a graphical representation of the factors affecting the rate and growth of employment and how the LMIS fits into the framework. Figure 1. Factors Affecting the Rate and the Growth of Employment

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Source- Woltermann(2004)

History of Jamaica’s LMIS Jamaica’s Labour Market Information Systems was launched in January 2002 and is managed through the Ministry of Labour and Social Security’s Planning and Monitoring Unit. Ideally, the LMIS represents an integrated and coordinated approach to the collection of information, and facilitates collaboration between users and producers, so as to ensure that relevant information is being produced and there is greater accessibility to information on the labour market. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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The LMIS has three main components, as described below and shown in Figure 2:

1. Labour Market Information and Intelligence: This element provides general information in relation to labour market. The provision of Labour Market Intelligence and information identifies employment opportunities in terms of the type of occupations and skills which are required by the labour market, career options and training information for curriculum development

2. Electronic Labour Exchange: This element facilitates efficient matching of job seekers and employers. Here, job seekers engage in job searches and post their resumes, while employers post vacancies to seek personnel.

3. Related Services: This element provides services such as Career Development which include workshops for jobseekers and students where information on labour market trends, job readiness and retention skills are disseminated. Jobseekers are also assisted with resume writing, job search and interviewing techniques. Figure 2. Components of Jamaica's Labour Market Information System

Goals and Objective of this document The identification of Labour Market issues critically rests on the availability of data, information and analysis. Labour Market information and analysis provide the essential basis for Employment and Labour Policy and informs the design, implementation, monitoring and evaluation of policies that are better focused and targeted. The Terms of Reference for the Technology, Innovation and Productivity Committee provided by the Labour Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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Reform Commission specifically speaks to the need to examine “how can technology enable labour market information to be quickly and widely disseminated, with minimum inhibition and stickiness to the various economic actors (investors, talent- holders, policy-makers, businesses) who need it for their timely decision –making on best use of their resources”. This document reviews Jamaica’s Labour Market Information Systems and provides insights on gaps and to suggest changes needed so that the LMIS can remain useful, effective and relevant to all stakeholders.

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Review of Jamaica’s Labour Market Information System Labour Market Information and Intelligence The LMIS should serve as a one stop data and information source, which necessitates the collection of data from all labour market sources. The findings of the review shows that the there is need to strengthen the collection, analysis and publishing of labour market information and intelligence. The International Labour Organization (ILO) defines LMI as “any information concerning the size and composition of the labour market or any part of the labour market, the way it or any part of it functions, its problems, the opportunities which may be available to it, and the employment-related intentions or aspirations of those who are part of it.” Some jurisdictions such as North Ireland use the term ‘labour market intelligence’ as opposed to labour market information to convey the notion that information should be analyzed and reduced to ascertain essential and relevant details. This document will thus apply the definition put forward by Woods and O’Leary (2006)

“Labour market information includes any quantitative or qualitative information and intelligence on the labour market that can assist labour market agents in making informed plans, choices, and decisions related to business requirements, career planning and preparation, education and training offerings, job search, hiring, and governmental policy and workforce investment strategies” The LMI definition put forward by the aforementioned authors include information and intelligence on the following 

Labour market conditions;



Demand and supply trends and requirements;



Composition and characteristics of labour supply;



Projections of future demand and supply;



Market and job opportunities, and problems;



Education and training services and resources; and



Other related information supporting labour-market related decisions

Research suggests a primary assumption of a competitive labour markets is access to LMI. LMI is a crucial element for optimal Labour market performance. Various Stakeholders require LMI to support decision marking and to respond to the needs of the market (See Table 1) Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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Table 1. Examples of Selected Stakeholders and their LMI Needs

Source: Woods (2006)

The findings of the review shows that the there is need to strengthen the collection, analysis and publishing of labour market information and intelligence. In particular, the gaps identified are listed below and will be discussed in further details in this section 1. There is lack of communication , coordination and trust among LMIS stakeholders with regards to sharing of information between some institutions, especially in government 2. Limited Synergies between educational institutions/training agencies and the LMIS 3. Inability to combine information from various sources into a Single/Common System 4. There is no established format standard for data that is shared

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5. Limited capacity and instruments to effectively and regularly collect, process, analyze and disseminate relevant and reliable LMI 6. Lack of Income Data 7.

Limited Registration of Skills (in the Skills Bank)

8. Limited Registration of Vacancies by Employers 9. Lack of linkage with placement agencies involved in overseas employment 10. Inability to capture information on un-registration and informality in the labour market

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Gap 1: There is lack of communication , coordination and trust among LMIS stakeholders with regards to sharing of information between some institutions, especially in government The establishment of an efficient labour market system through a fully functioning LMIS should involve a well-coordinated approach to the collection of LMI. Information from suppliers of labour market information generally impact the same stakeholders, including Government Ministries and Agencies, other private sector and non-government organizations, training providers, students, job seekers and employers. The same information are also provided by more than one suppliers to stakeholders. For instance, some information available on the national LMIS website can also be obtained from STATIN, PIOJ, MOE, HEART Trust/NTA, UWI, other educational and training institutions. The silos sometimes create ambiguity in the roles of some suppliers. There is some level of partnerships in relation to the collection of data, for example data gathered by STATIN, Ministry of Labour and Social Security (MLSS), HEART etc. are used by MLSS, HEART and PIOJ. However, entities generally operate independently without sharing data. In addition, suppliers are often reluctant to share databases and/or do not respond to a request in a timely manner. Lack of data sharing also results in secondary data being manually uploaded to the LMIS by its administrators instead of the producers. This methodology affects the timeliness of disseminating information. Given that the role of the LMIS is to collect, store, analyse and disseminate labour market information on trends in the demand and supply of labour and other market phenomena, this necessitates gathering data from all sources of LMI. This is particularly so, since the LMIS should operate as a one stop shop data source. The issue of silos arises when there is a breakdown in the monitoring LMIS institutions to ensure that there is no duplication. In 2001, a Labour Market Information Advisory Committee (LMITAC) was established as successor to the Labour Market Information System Working Group, to provide technical assistance to the Tripartite Labour Market Information and Labour Exchange Advisory Commission on all matters relating to the smooth functioning of the LMIS. The LMITAC was to bring together various elements of the labour market in order to further the development and improvement of the national LMIS, which is housed within the MLSS. Its role is to facilitate labour market research, the sharing of labour market information among member organizations and the dissemination of labour market information to the wider public. LMITAC is responsible for designing and implementing programme of activities in relation to the wider dissemination of, and/or the improvement of methodologies relating to, the collection, analysis and dissemination of LMI. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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The Committee should also promote discussions among the stakeholders in relation to the responsibilities of agencies and their contribution to the LMIS and ELE. However, activities of the LMITAC primarily surrounds the reporting and dissemination of LMI by all suppliers during quarterly meetings and a Labour Market Forum held annually. In fact, since 2001, the LMIS has been enhanced two times without the input of the LMITAC. Limited monitoring by the LMITAC has led to the formation of a similar LMIS structure, the Labour Market Information Portal (LMIP) by the HEART Trust/NTA. The HEART Trust/NTA has been mandated to fulfil its functions as stated in the Human Employment and Resource Training Act of 1982 1, as well as, its mission of relevance and flexibility. As such, HEART provides relevant education and training opportunities to students and training providers, informed by the supply of labour market intelligence for the national training system. Both the MLSS and HEART Trust/NTA currently collect data on vacancies, skill shortage and graduate placements. Prior to the establishment of the LMIP, the HEART Trust/NTA approached the Ministry to establish a partnership. This was done without the input of the LMITAC. An MOU was drafted between both parties, however, it was also clear that the Institution already had plans in place to establish their own LMIP. With the establishment of the LMIP, the issue of which system is the National LMIS now becomes a focus. It was clear from the Terms of Reference of the formation of the LMITAC that the LMIS of the MLSS was established as the National LMIS. Based on the above review, it is clear that there are governance issues that needs to addressed, which is evident based on the seemingly lack of leadership: national body or stated LMI policy; lack of clearly defined roles and responsibilities around data collection, collation, analysis and reporting; overall management; and dissemination and sharing of information. The result is inefficiencies in sharing information, unclear lines of responsibility and unhelpful competition among different bodies/agencies.

1 The HEART Act (1982): To provide employment opportunities for trainees; To direct or assist in the placement of persons seeking employment in Jamaica; To promote

employment project; to take such steps as it considers necessary to establish and maintain high standards in technical and vocational education and training; to cooperate with other organizations and bodies in matters relating to technical and vocational education and training

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Gap 2: Limited Synergies between educational institutions/training agencies and the LMIS There is a need to have tighter synergy with training agencies and educational institutions (such as universities) in order to have information on skills gaps and labour market needs readily available. The Ministry of Education, through the National Training Agency, plays a key role within the LMI flow by providing relevant education and training opportunities to potential students and training providers. Through the mandates of the HEART Trust/NTA to fulfil some of its functions as stated in the Human Employment and Training Act (1982) 2, as well as, its mission of relevance and flexibility, the institution also supplies a frequent and consistent level of labour market research studies and intelligence for the national training system. This information is now being provided electronically on its Labour Market Information Portal (LMIP) to expand the reach of its customers and stakeholders. The Employment and Career Services Department along with the HEART Trust/NTA Institutions currently collect data on vacancies, skill shortage and graduate placements. This information should be supplied to all training entities to influence programme offerings. The Electronic Labour Exchange (through the MLSS) works with HEART Trust/NTA in a limited capacity, however, there is need for collaboration or combination of the MLSS and HEART Trust/NTA LMIS to properly capture and report skill gaps and labour shortage. Currently, both systems have identical objectives and overlap in several areas as well complement each other’s functions. Additionally, data collected by both entities especially HEART Trust/NTA Employment and Career Services should be used to recommend programme offerings for other training institutions. This collaboration/combination along with external entities is an important step in becoming the National Employment Portal. This will help to reduce competition and duplication among other entities. Training agencies need to know what skill gaps exist and how to target their training as well as the labour market needs. The ELE on other hand can provide information on the gaps and labour market need based on what is seen from an employer’s perspective. The training agencies can then utilize this information to develop and implement training programmes to respond to labour market demands. Both ELE and training agencies can benefit from sharing labour market data and planning the necessary intervention,

2 The HEART Act (1982): To provide employment opportunities for trainees; To direct or assist in the placement of persons seeking employment in Jamaica; To promote

employment project; to take such steps as it considers necessary to establish and maintain high standards in technical and vocational education and training; to cooperate with other organizations and bodies in matters relating to technical and vocational education and training

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collaborating in the use of the electronic databases to facilitate efficient referrals, job placements and reporting, and referring job applicants with competency gaps to training institutions for training and certification Furthermore, there is a lack of linkages between the needs of the labour market, as signified by unfilled vacancies, and what TVET courses the training institutions offer. Similarly, the data available to curricula and vocational advisers in schools, on vacancies likely to open up in the future, and on what level of wages are currently paid in various occupations, severely curtails the information base on which career guidance is offered and on which students make career choices. In addition, the MLSS has shared that although they have engaged universities to establish some relationship, so as to get vital information from the universities to further strengthen the LMI, such talks have mostly resulted in non-compliance and/or resistance. It is paramount to note that occupational projections can help anticipate structural problems in the labour market in Jamaica. Therefore, it is important that there is increased synergy between training agencies and/or universities and the National Employment Portal (via the ELE) so as to glean information for career planning and workforce development.

Gap 3- Inability to combine information from various sources into a Single/Common System A well-functioning LMIS should be equipped with the IT infrastructure to capture all the Key Labour Market Indicators (KLMI), house analytical software, facilitate input of data by external suppliers and generating reports, so that trends in the demand and supply for labour can be efficiently ascertained. An audit of the current system at MLSS needs to be done in order to facilitate a comprehensive requirements document that will include a mobile application along with modern technology. Currently, the LMIS infrastructure does not adequately capture most of the KLMI needed to facilitate a more efficient functioning LMIS. Table 2 shows the KLMI currently captured and stored by both MLSS and HEART in their respective LMIS. Currently, Labour Market data is uploaded in pdf format to the LMIS website by the research department of MLSS. These documents are also displayed to users in the same format; as a result, users do not have the ability to easily extract portions of data or to manipulate to create graphs, charts, etc after downloading. In addition, based on how the data is uploaded, it cannot be used with any report generator, which would give the users the capability to create their own reports based on querying data contained in the database.

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The LMIS website is hosted outside of the Ministry of Labour by an external company, hence, the hardware, storage and maintenance capabilities are not easily adjusted to meet the needs as they occur. It involves money to upgrade and time delay in communication with host provider. Even though administrators of the website can login from any location and make changes based on permissions, there is no mechanism for data sharing. As such, other entities that provides the Ministry with Key Labour Market Indicators cannot share data via the LMIS website (which would be easier), but instead has to email the data to MLSS.. The development and implementation of the different phases and enhancement of the current website to make it more user friendly and more effective, is delayed due to lack of manpower. Only one person is currently maintaining and developing the system Thus, the absence of a coherent and comprehensive system to handle data/information flows from multiple sources in an integrated manner needs to be addressed, as it is a essential component of the LMIS.

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Table 2. Key Labour Market Indicators No. Indicator Key Labour Market Indicators 1 Labour Force Participation Rate 2 Employment-to-Population Ratio 3 Status in Employment 4 Employment by Sector 5 Employment by Occupation 6 Part-time Workers 7 Hours of Work 8 Employment in Informal Economy 9 Unemployment 10 Youth Unemployment 11 Long-term Unemployment 12 Time-related Underemployment 13 Inactivity 14 Educational Attainment and Illiteracy 15 Skill-Mismatch 16 Wages and Compensation Costs 17 Labour Productivity 18 Poverty, Income Distribution, Employment by Economic Class and Work Poverty 19 20 21 22 23 24 25 26 27

Cooperation in Labour-Employer Relations Flexibility of Wage Determination Rigidity of Employment Hiring and Firing Practices Redundancy Costs Pay and Productivity Reliance on Professional Management Brain Drain Female Participation in Labour Force

28

Labour Market Information Signalling

MLSS

HEART

Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes

Yes Yes

Yes Yes Yes

Yes Yes

Yes

Yes

Yes Yes

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Gap 4: There is no established format standard for data that is shared In order to ensure greater level of analysis and validation of information, there has to be standardization of data, for example age cohort data, industry and occupational classification. In some cases results from research cannot be compared due to variations in the same type of data collected. For example, with respect to age data, the Labour Force Survey collects data from persons aged 14 years and beyond while the Schoolto-work Transition Survey gathers from 15 years. STATIN is modernising its Industry Classifications to bring Jamaica in line with the current UN Classification System ISIC Rev4 which includes, as an example, Information and Communication as a separate industry. This will bring Jamaica in line with global standards and facilitate international comparisons. Gap 5: Limited capacity and instruments to effectively and regularly collect, process,

analyze and disseminate relevant and reliable LMI

Data Collection: One of the factors which influence the timely delivery of research project is the use of technology in the field. Currently, data collected by the MLSS during field work is stored in hard copy and then inputted later. Greater level of efficiency and accuracy is realized if technology is used to simultaneously enter data while conducting field work. In addition, there is a lack of adequate financial and human resources to conduct studies. For example, the MLSS’s National Labour Market Survey should be conducted biennially, however this has not been consistent. In general there is a lack of adequate financial and human resources to conduct studies, as well as hardware and software needs. Analysis: Greater level of analysis is required to determine, validate and predict the demand for and supply of labour. There is also the need for more analysis on the impact of policy changes such as fiscal and monetary policies on the demand for labour, GDP, youth employment, poverty, conditions of employment etc. A well-functioning LMIS should therefore be equipped with the IT infrastructure to capture all the labour market indicators, house analytical software, areas for inputting data and

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generating output, so that trends in the demand and supply for labour can be easily ascertained. It’s staff should also have the capacity to determine, validate and predict the demand for and supply of labour. The MLSS Annual Report and Statistical Bulletin provide analysis of administrative data relating to activities of the Ministry carried out during the fiscal and calendar year, respectively. The data is compared with the previous years’ figures and is used as indicators of productivity, poverty, demand and supply of labour and conditions of employment, which affects the dynamics of the labour market. Given the relevance of the information, there is the need for more frequent analysis of statistics produced by the MLSS. Data gathered through primary sources are analyzed, using statistical packages such as Statistical Package for Social Sciences (SPSS) and Microsoft Excel. However, in order to improve analysis, a more robust statistical package is needed. The MLSS also does analysis of employment situation over a five-year period in its National Employment Report. Analysis is also done on advertisements posted in the newspapers. However, this needs to be done on a more consistent basis. In the case of the Sector Studies, there is need for greater level of forecasting at the parish level. Currently, one newsletter is being done annually due to human resource and time constraints. There is also a challenge in delivering the products in a timely manner. Furthermore, the LMIS does not provide real time data. Attempts have been made to provide weekly analysis on Hot Occupations, however this is constrained by human resource capacity and time. STATIN conducts labour market surveys quarterly to inform the supply side of the labour market. However, while the LMIS website lists current job vacancies there is no detailed information about vacancy problems such as shortage of skills and hard to fill positions. There is the need for more forecasting to ascertain the number of workers by categories, in order to efficiently guide training. This necessitates staff to be well trained in forecasting. The high level of informality and Jamaica’s susceptibility to shocks make it problematic to make predictions. During the 1990s the PIOJ used a method of forecasting for manpower planning. With the country’s susceptibility to external and internal shocks, it became more difficult to accurately predict the demand for labour. As such, the method of labour market signalling was adapted by the PIOJ, which is also used by the MLSS. Whilst the MLSS does not use a statistical tool to predict the demand for labour, questions are included in its Labour Market Study to ascertain the number of workers which will be needed by employers. However, the response rate for this question is usually very low as most employees are not able to forecast up to the next six months to 2 years. Forecasting is being used by HEART in Sector studies to Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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determine the number of workers who will be needed. Although validation of these numbers is done through the sector committees, there is no clarity as to whether the number of workers who were forecasted are actually employed and remain in employment. Dissemination: There is not much evidence to substantiate whether recommendations from labour market research are used in formulating policies and programmes. In addition, although various recommendations are provided, there is at times, no follow through to ensure implementation. The accessibility of information to stakeholders, packaging and frequency of dissemination of LMI are important in ensuring that stakeholders’ needs are met. Generally, suppliers of LMI publish information using various means. For example, STATIN release information in Press Releases, on their website and in annual reports.; and PIOJ has a Press Conference on publication of their figures. However, labour market information from the MLSS are tabled in Parliament by the Minister and is rarely disseminated through press releases. Publishing of information may take the form of written document and CDs. In some cases information is posted on the suppliers’ websites. However, this practice is constrained due to the fact that establishments such as PIOJ and STATIN have to earn from selling their publication and hence would not disseminate all of their information on their website. However, although sold to private users information packaged by PIOJ and STATIN are made available to Government entities. LMI is available free of charge from the MLSS and HEART portals and can also be accessed without a cost through the LMIS and LMIP. There is a challenge in accessing information via the Internet since not everyone has access. The MLSS has therefore entered into partnership with the Jamaica Library Services to use the libraries to access LMI and to register and search for jobs. However, there is greater need to disseminate information at the community level since many maybe limited by high transportation costs. See Appendix A for details on LMI producers in Jamaica. The frequency of publication of materials by suppliers varies. The publications from LMI providers, along with the frequency of publications are provided in Table 3.

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Table 3. Frequency of Publications Organisation

Publication

Frequency Annual Annual

STATIN

Demographic Statistics Employment and Earning and Hours Worked in Large Establishments National Income and Product Consumer Price Indices Annual Review Pocketbook of Statistics Quarterly Gross Domestic Product Labour Force Survey The Producer Price Index Review The Consumer Price Index (CPI) Bulletin International Merchandise Trade Bulletin Population Census Jamaica Industrial Classification Jamaica Standard Occupational Classification

Sector Studies

Annually

LMI Newsletters

Annually

Annual Annual Annual Quarterly Quarterly Monthly Monthly Monthly Every 10 years Last review 2005 Last produced in 2015

HEART

PIOJ

Framing Social Development Policy Through Research Jamaica Survey of Living Conditions: Parish Report Economic and Social Survey Jamaica Survey of Living Conditions (Joint PIOJ/STATIN Project)

Annual Report

Every 4 years Annual Annual

Annual

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Organisation

Ministry of Labour and Social Security

Publication

Frequency

Statistical Bulletin Labour Market Trends and Prospects for Employment Opportunities in Jamaica National Employment Report

Ad-hoc Biennial

National Labour Market Study Hot Occupation Analysis LMIS Newsletter Sectors Studies

Biennial Monthly Annually (2) Annually

Ad-hoc

Gap 6: Lack of Income Data There is no reliable data on income distribution by occupational groups. The quality of wage data obtained from primary sources is a challenge, as persons with low wages sometimes underestimate their wages, while the converse holds for those with higher wages. Based on international practices, it is important for LMIS to be able to produce statistical information in relation to wages and earnings of the labor force. Such data/information will provide insights on the situation of employees and offer a measure of the level and trend of their purchasing power and an approximate appraisal of their level of life. In addition, such information is necessary to produce trend in wages of various occupations/categories of labour. Thus income/wage data is vital for many stakeholders.

Gap 7: Limited Registration of Skills (in the Skills Bank) The LMIS database consists of jobseekers of varying skill level. The MLSS is in the process of upgrading its skills bank to include a comprehensive database of skills in Jamaica by location, which includes both jobseekers and employed persons. The MLSS has begun partnerships with organizations to access their database of skills. The LMIS faces serious challenges with skills mismatch, as there are times when jobs are posted on the system/database and suitable candidates are not found to match what the employers are looking for. It therefore means that more jobseekers with specific skills need to be encouraged to register on the system/database. Persons with varying skill sets register on the LMIS database but there still exists scarcity in the registration of skill sets at a higher level. It is often the case that only the least-skilled individuals are likely to register Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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with the national skills bank. This can be as a result of the fact that most of these persons would have already been engaged in employment or those who possess these kinds of skill sets and are disengaged simply do not know about the LMIS. In addition, it could be that the professionals are sceptical of using the government portals as they believe them to be more vocational in nature rather than professional, in this regard a Caribbeanjobs.com, splashjamaica.com for example, with their solid marketing campaigned specifically targeting these professional positions, are preferred. Thirdly the fact that the labour market is not producing the skill set that are needed in great numbers.

Gap 8 : Limited Registration of Vacancies by Employers Employers do not utilize the website citing several reasons for this, ranging from limited time on their part to go on the system to it not being user friendly. Most employers do not utilize the feedback section of the website; neither do they use it to search for candidates. Since the revamp of the system in November 2013, the site has over ten thousand jobseekers 10,000 over 600 registered companies and has posted over 647 jobs. The underutilization of the site is further enhanced with the advent of other database example HEART NTA portal, CSJP, and YUTE, which also compounds the problem in essence further breaking up skills that should all be funnelled into one national database to provide viable option to employers looking for these skills. The role of the LMIS must be to provide a national portal that would speak to the development of a comprehensive pool of skills that an employer of jobseeker may go to locate information..

Gap 9: Lack of linkage with placement agencies involved in overseas employment The Ministry of Labour and Social Security (MLSS) has the responsibility of granting work permits and exemptions with the objective of ensuring that the Jamaican economy is supplied with the labour and skills necessary for growth and development whilst undertaking steps to protect the jobs of Jamaicans. Foreign and commonwealth nationals who wish to engage in employment whether voluntary, commercial, business, professional, charitable, entertainment or sports must obtain a work permit or work permit exemption before entering Jamaica. Each year, work permits are granted to expatriates where Jamaicans are deemed to not have the requisite skill or qualifications. In other words, skills shortages in the labour market are addressed through the issuing of work permits.

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In the 2013/14 fiscal year 4, 138 applications for work permits were approved. This represented an increase of 22.4% compared to the previous year. Each job given to an expatriate through the issue of a work permit or exemption represents an employment opportunity that could have been taken by a Jamaican job seeker. In this regards companies/organizations that wish to bring in expatriate are asked to advertise, however they do so on their own and without any form of monitoring of the advertising process by the MLSS. As such, there may be some amount of uncertainty about the methods used to advertise and the efficacy of the steps taken to hire a local applicant. The Industrial Relations Unit manages disputes between unionized workers and employers. Employers are also required to provide information on positions, which are to be made redundant to that Department. A wealth of labour market information is therefore generated through the discharge of the responsibilities of this department. The Employment Agencies Unit monitors the operations of employment Agencies as they seek to place persons in local and overseas employment opportunities. The information generated in this department also represents critical information that can be used in assessing labour market needs. The Social Intervention programmes aim at providing young persons with exposure to employability skills, training and work experience in order to assist them to find permanent Employment. The Steps-to-Work programme assists persons from PATH households to find employment. In order to conduct a comprehensive and thorough assessment of the types of skill that are demanded and some of those being supplied to the Labour Market, it will be necessary to obtain the relevant data for analysis. There are several departments in the Ministry, which generate this type of information particularly the ones mentioned above. These departments need to be linked in order for the data generated to be shared and to be available for analysis on the LMIS. Pulling all the data from the various units within the Ministry together in the repository that the LMIS is supposed to be will help to highlight the demand for skill sets by employers as well as the skills which currently exist within the country. This will also help in labour market signalling and understanding the various types of unemployment that exists in the country. An electronic data transfer mechanism linking all the data generating departments to the LMIS would allow for quick and easy data transfer. There is a need to analyse work permit data to determine areas of employment and categories of workers that will be needed in the labour market. Further insight into categories of skills required in the labour

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market and those required for placement overseas through the MLSS and private employment agencies will also provide critical information to the education and training system. Data is also required on the specialized tasks performed by the holders of work permits/exemptions in order to guide the government and vocational training institutions on the kinds of training needed to replace more expansive expatriate labour with nationals. An interface between all these departments and the LMIS is needed to facilitate access of more Jamaican job seekers to jobs currently obtained by work permit holders. A system of effective data transfer from all the data producing units to the LMIS should be facilitated.

Gap 10: Inability to capture information on un-registration and informality in the labour market The definition of “Informal Sector” being used by STATIN is in accordance with the international definition being used by the ILO:    

All own-account workers and employers who own informal enterprises Employees working in enterprises with less than 10 employees All contributing family members All employees in jobs where NIS contributions are not deducted from the wages.

It is to be noted that the definition does not include “workers in the agricultural sector” (207,800 in 2014; 18.5% of the LFS) and “household domestic workers” (32,100 in 2014; 2.9% of the LFS) Un-registration and informality are challenges that need to be addressed in a structured manner and sustained manner that all workers may benefit in the long run. The number of persons employed within the informal sector represents a significant portion (37.85%) of the employed labour force as shown in Table 4. Table 4 .Informal Sector Employment Year 2014 Formal Informal Agriculture Domestic Worker Unclassified TOTAL

Male

Female 205, 700 255,200 169,000 0 9,600 639,500

TOTAL 237,000 170,000 38,800 32,100 4,800 483,500

443,300 425,400 207,800 32,100 14,400 1,123,000

%age 39.47 37.85 18.50 2.90 1.28 100

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It is to be noted that even though agricultural workers and domestic workers are not included in the informal sector, many of these workers are also unregistered with and are not participating in the NIS. Associated with the informality are the other related factors: 1. Social Welfare benefits such as NIS and pensions are not available to persons in the informal sector. The comparative ages of the persons employed in the formal and informal sector, Table 5 indicates that more persons remain employed in the informal sector after the usual retirement age of 65. In addition there are a higher number of persons in the 54-65 age group, who are approaching their pensionable age without the necessary securities for retirement.

2. Under education of the sector (See Table 6). The within the informal will transferring to jobs which competencies, particularly 3. The geographic regions informality are the KMA Table 7);

Ages 14 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 & over TOTAL

Formal Informal 5,000 10,200 56,300 38,100 142,100 107,800 113,900 112,600 80,200 90,500 39,000 45,700 6,800 20,500 443,300 425,400

population within the informal under education of persons restrict their upward mobility of require higher levels of skills and within the formal sector. with the highest level of and the rural areas (See

4. The sectors of the economy in which there is the highest employment within the informal sector (See Table 8 and 9). Table 5. Comparative Ages of Employed Persons

Table 6. Educational Qualification by Highest Exam

Exam None

Formal Informal 150,000 336,200

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CXC Basic, JSC 5 SSC CXC Gen., GCE “O” 1-2 CXC Gen, GCE “O” 3-4 CXC Gen, GCE “O” 5+ GCE A 1- 2 GCE A 3 or more Degree Other Not Stated TOTAL

8,600 15,300 34,500 44,500 1,600 4,800 134,000 20,000 29,500 443,300

5,700 11,300 16,200 12,400 600 1,100 14,900 10,600 16,300 425,400

Table 7. Employment by Geographic Region of Residence

Region KMA Other Urban Areas Rural TOTAL

Formal Informal 215,500 152,700 88,500 90,100 139,300 182,600 443,400 425,400

Table 8. – Employment by Industry Group

Industry Mining & Quarrying

Formal

Informal 5,400

0

34,000

37,100

7,900

0

Construction

10,100

68,100

Wholesale, Retail & Repairs

63,700

157,000

Hotels & Restaurants

46,200

32,400

Transport & Storage

32,200

41,800

Real estates, Business Act & finance

73,600

17,200

Public Admin., Education & Defence

122,200

4,400

Manufacturing Elec., Gas & Water

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Health, Social work & Personal Services

44,100

43,600

Private Household employee

1,400

21,900

Not Stated

2,000

0

443,000

425,400

TOTAL

Table 9. Changing Structure of the Economy - Percentage Contribution

INDUSTRIES

1970

1980

1990

2000

2011

2014

Wholesale, Retail; Repairs; Install.

18.9

19.2

18.2

19.7

18.9

17.6

Producers of Government Service

7.9

14

7.4

11.7

14.2

13.15

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Real Estate, Renting ,etc.

9.5

8.5

9.9

9.3

12.2

10.74

Financial & Insurance Services

3.5

4.8

6.8

9

10.2

11.05

Transport, Storage & Commun.

5.5

5.1

8.4

10.7

9.7

10.99

Manufacturing

15.8

16.6

16.9

10.5

9.2

8.46

Construction

13.3

5.8

7.2

7.6

7.3

7.12

Other Services

5.6

4.3

6

6.6

6.7

6.9

Agriculture Forestry & Fishing

6.4

8.2

6.8

7

6.5

6.98

Hotels & Restaurants

1.6

0.9

6.1

5.1

4.3

5.55

1

1.6

2.2

3.2

3.6

3.16

Mining & Quarrying

12.7

14.2

7.8

4.2

1.5

2.32

Less: FISM

1.7

3.3

3.7

4.6

4.3

4.02

100

100

100

100

100

100

Electricity & Water Supply

Total Value Added Source: www.statinja.gov.jm

The ability of Jamaica to tap into information surrounding the informal and unregistered sector limits the data captured by the LMIS –it impacts information that labour market produce. Thus adequate data on this sector is still lacking. Information on this sector is critical for undertaking support and development activities.

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Recommendations Recommendation 1: Establish Ministry of Labour and Social Security as the single lead institution for driving forward the development of the LMIS Based on international best practices used in countries such as Canada, a single government ministry or department should manage the LMIS. This department is normally responsible for aggregating (or ensuring the aggregation of) the supply and demand side information related to the labour force and ensuring that the information and data required by different users is available. It is recommended that the Ministry of Labour and Social Security is established as the agreed single lead institution to oversee the LMIS. Type of Decision: Policy

Goals/Actions: 1. Revamp role of Labour Market Information Technical Advisory Committee (LMITAC) to have an integrated Coordination and Harmonization Committee for LMIS 2. A formal agreement must be reached at the government level. This should address the particular questions, challenges, and decisions for which LMI is required for policy and planning in Jamaica Labour Market. 3. Key stakeholders in developing the LMIS, users of the LMIS, and different users’ requirements must be formally identified, mapped, and shared among key stakeholders. 4. Review the existing list of key labour market indicators to be monitored and the methodologies used in collecting them; and determine the priority labour data needs for monitoring. 5. All stakeholders should agree on the Key Labour Market Indicators that will be captured. Roles of each stakeholder must be explicitly stated and agreed upon to prevent duplication of efforts, that is, establish data parameters. 6. A set of occupational, sector and course codes for use in the skills sector, and all other necessary data must be approved and adopted by key stakeholders

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7. Establish a stakeholder engagement strategy. Stakeholder engagement activity is initiated to raise awareness among stakeholders of the importance of the LMIS and their role within it. Key Information gaps to be filled: 1. There is lack of communication , coordination and trust among LMIS stakeholders with regards to sharing of information between some institutions, especially in government 2. Limited Synergies between educational institutions/training agencies and the LMIS 3. There is no established format standard for data that is shared 4. Lack of Income Data 5. Limited Registration of Vacancies by Employers Rationale: 1. The sharing of information, the dissemination of data and its analysis, where it exists, is insufficient and in some cases often non-existent. Without such interaction, increasing the efficient operation of the national and the regional labour markets will not be accomplished 2. There is a need for key stakeholders to gain a full understanding of the purposes behind collecting additional LMI and to get buy-in 3. Effective governance is instrumental to a systematic approach to LMI and must be a fundamental strategy 4. Collaboration among government ministries, agencies, and private sector entities is probably necessary to building a robust LMI system. 5. Failure to create a proactive partnership will result in duplication of effort in development, analysis, and dissemination of information, which is not cost effective and can lead to conclusion among users of the LMI. 6. There is a need to conceptualize and plan a ‘holistic’ LMIS with shared responsibilities and funding to develop a more comprehensive approach rather than operating in silos and/or competing. Lead Agency: The Ministry of Labour and Social Security in conjunction with the PIOJ and all other stakeholders should work Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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together to make this possible.

Recommendation 2 Information/data flows from multiple sources is integrated in a common information system It is established that Labour Market Information consists of multiple flows of information or data from different sources, including surveys, vacancy data, sector reports, information held by industry bodies, agencies and other sources. Based on international best practices, multiple sources must be brought together in order to have a coherent and comprehensive LMI system, and thus a common information system as an essential component of the LMIS Type of Decision: Policy and Administrative Goals/Action: 1. Audit and Upgrade LMIS Infrastructure. Provide recommendations on how the infrastructure and architecture of LMIS can be strengthened. The LMIS should be upgraded with improved technology to assist in efficiently gathering and analysing labour market information. This audit should be performed periodically to handle current and future demands. 2. Data/Information System will be fed into the common information system housed by MLSS. It is important to constitute a labour market data base, which is essential for coordinating information production and storage. 3. Therefore even if organizations have their independent systems, MLSS becomes the ‘holder’ of all LMI, and data is integrated into one system Key Information gaps to be filled: 1. Inability to combine information from various sources into a Single/Common System Rationale: 1. There is absence of a ‘single window’ that provides information on all aspects as it relates to labour market. 2. There a need to integrate LMI into one platform which can aid key stakeholder in developing strategic plans Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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Lead Agency: The Ministry of Labour and Social Security

Recommendation 3 Increase capacity and instruments to effectively and regularly collect, process and analyse and disseminate relevant and reliable LMI Type of Decision: Administrative and Financial Goals/Action: 1. Audit and benchmark technologies used for data collection in the field. 2. Improve the method by which data is collected by staff in the field by way of technology/automation 3. Implement the necessary software to assist with in-depth analysis of labour market information and greater generation of labour market intelligence 4. Assess the needs of the current staff at the LMIS in terms of data analysis. The MLSS should have informed and adequately trained labour market analysts 5. Perform regular data collection – establish frequency that is benchmarked against best practices. 6. A dissemination strategy must be developed by providers of LMIS to ensure that the LMI is available to all. The strategy should take in consideration those who and do not have access to computers at home. Key Information gaps to be filled: 1. Limited capacity and instruments to effectively and regularly collect, process, analyze and disseminate relevant and reliable LMI Rationale: 1. Greater level of efficiency can be realized if technology is used to simultaneously gather data and upload to an analytical software (For example, this could be achieved if tablets are used to directly input data during fieldwork. In addition, voice convertors is required to convert voice to texts to reduce the data entry phase of qualitative research) 2. Improvement in data collection will allow for more timely delivery of research

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3. Analyst are key players in the LMIS as they support data development and composition, interpret and analyse data which serves as the source of qualitative and quantitative information and as part of the intelligence gather systems. This will further improve the labour and employment monitoring and evaluation processes in Jamaica.

4. A dissemination strategy allows effective dissemination of information to all citizens, businesses, education, governmental officials and other users .

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Recommendation 4: Conduct a programme of awareness-raising among stakeholders The LMIS has been around for over 12 years but still has not gained the recognition that is deserving of a National Employment Portal. It is against this background that a comprehensive public awareness campaign specifically targeting employers and high end professionals is being undertaken. The campaign will stress on the importance and value of a working LMIS Goals/Actions: 1. In terms of engaging more participants it may be advantageous to rename & rebrand the National LMIS as the “National Employment System”. This connotes a more favourable image than a “Labour” Market Information System. Labour, and its derivative “labourer” tends to connote a particular demographic 2. Design and undertake a 12-month public education campaign geared at increasing responsiveness to the Labour Market Information System. It is recommended that the features of the campaign include: 

Develop and produce one 5- minute radio feature with 10 spots to be included in JIS radio programmes



Television feature on national television

and in conjunction with the JIS television

programme “Jamaica Magazine” 

Design and place one top banner on popular websites 12 weeks



Design and place one bus wrap (driver side panel) for 6 months



Produce one 30-second jingle



Place one 30-second jingle in commercial media



Think tank to promote the importance of employers being a part of LMIS surveys

Key Information gaps to be filled: 1. Lack of Income Data 2.

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3. Limited Registration of Vacancies by Employers 4. Lack of linkage with placement agencies involved in overseas employment 5. Inability to capture information on un-registration and informality in the labour market Rationale: 1. Can help to promote the importance of LMI to (i) governmental policy makers and how to effectively use LMI in policy and program design and (ii) the public, businesses, education, and intermediaries as a resource for more effective job, education, workplace, and economic development planning and decisions making 2. Can help to reduce labour market imbalances 3. Raise awareness of workforce development issues in Jamaica 4. To allow for heightened awareness of the LMIS, which may increase the number of registrants (employers and job seekers) Lead Agency: 1. The Ministry of Labour and Social Security should engage an Agency to design, direct, produce and place a multimedia campaign which reaches the target audiences for the campaign with the messages that have been developed.

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Recommendation 5: The Annual Return Form from the NIS should be modified to collect additional data to enrich LMI and to assist with the collection of wage data Some of the most complete LMI can be found in NIS data bases—age, sex, occupation, sector of employment, hours worked per period, earnings for that period—up to a wage ceiling etc. However, occupation is usually only recorded on registration and hardly ever updated; in contrast to the employee’s sector of employment when he or she changes employer. Therefore, this database could aggregate numbers employed and earnings across contributors to provide mean earnings (weekly, hourly or monthly) by 2-digit sectors - by sex by withincountry location. If citizenship were recorded—which it is not in the vast number of cases—we would get more insight into the nature and extent of the Free Movement phenomenon. Type of Decision Administrative Decision Legislative Changes Goal/Action: 1. Modify the NIS form which is provided by the employers which specifies the names of the employees for whom contributions are made in a way that the occupation of these employees is included. (See Appendix B for a copy of current form) Key Information gaps to be filled: 1. Lack of Income Data Rationale: 1. Since none of the NIS institutions in the Caribbean Region has updated information about the occupation of the contributors, (occupation is usually defined in the database at the registration stage and never updated), it is recommended that NIS institutions make efforts to update occupational information.

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Recommendation 6 All persons enrolled in Public Secondary, Tertiary and Vocational Institutions should register their skills with the LMI It is recommended that there be registration of students on exit from all public educational and training institutions in order to provide information on the supply side of the labour market. In addition the LMIS should partner with the Jamaica Library Service (JLS) to register skilled persons that are employed and unemployed in communities. Type of Decision Administrative Decision and Legislative Changes Goals/Action 1. All public secondary schools are required to complete a census 2. Assign Career Counsellors and/or retrain/retool Guidance Counsellor. 3. Develop job descriptions for Career counsellors and organize re-training sessions 4. Mandate Career week on a yearly basis for all secondary, tertiary and vocational institutions– (this will lead to Career Development) 5. Mandate registration or make it enforceable at graduation – (development of school’s core curriculum to support that) 1. Sensitize graduates, provide direction for career path, cross match skills with jobs Key Information gaps to be filled: 1. Limited Registration of Skills (in the Skills Bank) Rationale 1.

To improved data base of registered skills set

2.

To improve awareness of the LMIS among student population

3.

Increase the number of individuals referred by LMIS to other institutions to access services offered by them (HEART, PATH, JBDC, NYS, etc)

Lead Agencies Ministry of Labour & Social Security (LMIS), MOE, Ministry of Youth & Culture, OPM

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Recommendation 7 All public sector entities should post vacancies (active) and search for jobs via the LMIS, the Ministry of Labour and Social Security portal

Data on job vacancies are critical for assessing the demand for labour and the skills shortage. Thus, vacancy registration and advertisement is one of the main activities for Public Employment System (PES). In order to achieve its objectives, it is often considered vital for Public sector entities to register as many vacancies as possible. Type of Decision: Administrative Decision and Legislative Changes Actions/Goals: 1. All public sector entities be required to inform the national employment portal of any job vacancies. It should be noted that employers are not limited to this means of advertisement, and can use other (recruitment) methods also such as advertising, applicant initiative etc. 2. Establish the method by which employers notify MLSS of vacancies. For example, employers could be given the option of providing notification of vacancies via form available online or personally at a specified office 3. Establish the data parameters, that is, information that should be submitted by employers. For example, include (but not limited to) working conditions (date of take-up; type of contract: fixedterm/indefinite, part/full time, home worker, other; organization of working time: shifts, flexible, other; working time: weekly, shorter-weekly; working hours), method of search (advertising in print media and on internet; advertising abroad; mediating suitable employees through group selection, individually, or another method), benefits offered by the employer (accommodation, housing, transport, other), description of the vacancy (occupation, suitable for disabled persons, for young graduates; brief description of expected activities; expected gross wage), required qualifications (in terms of educational attainment, field of study, work experience), required skills , and other required competences, certificates and personal characteristics. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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4. Experience from other countries suggests that even if there is a legal requirement, compliance at times tends to be low. Thus, in addition, it is also recommended that the National Employment Portal can register vacancies posted elsewhere for example in the local newspaper, so as to proactively identify job openings Key Information gaps to be filled: 1. Limited Registration of Vacancies by Employers

Rationale: 1. To achieve greater efficiency in locating employment in the public sector 2. To increase in information on job availability in the public sector

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Recommendation 8 Vacancies must be advertised on LMIS and in print and electronic media prior to work permit application. Furthermore, an interface between the work permit and the LMIS should be developed. Companies which apply for work permits in order to bring expatriates into Jamaica should be required to utilize the government operated Labour Market Information System to advertise the vacancies for which they intend to import skills. This will facilitate the opportunity for persons with requisite skills to apply for posted positions. It will also help to identify areas required for long term forecasting and training in order to hone specific skill sets. In addition, it will allow for the justification for approval of work permits for particular skill sets if they cannot be found on the data base. Work permit applications reflect vacancies locally; hence Jamaicans should be in a position to get first preference in applying for the position(s). Advertising in print and electronic media will give nationals the opportunity to see and apply for these positions. Type of Decision: Administrative Decision and Legislative Changes Actions/Goals: 1. The Permanent Secretary should give instructions for the preparation of a data transfer/data sharing policy, which would become the framework within the relevant departments would share data and supply data/information to the LMIS. 2. Information on types of skills being demanded by those who are submitting applications for work permits should be fed into the LMIS where those vacancies would now be advertised and responses monitored to ensure that work permits are issued only when all the necessary steps have been undertaken and a thorough recruitment process has yielded no qualified local jobseeker. Key Information gaps to be filled: 1. Lack of linkage with placement agencies involved in overseas employment Rationale: 1. More qualified and skilled Jamaican jobseekers in key positions of employment in many large companies. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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2. Reduced numbers of qualified unemployed persons in the labour market 3. More critical labour market intelligence available to clients of the LMIS Lead Agency This policy requires coordination between the data generating Departments of the MLSS.

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Recommendation 9 : Programmes should be implemented to increase human capacity to undertake specific tasks islandwide (MIS, Employment services, career development officer, corporate communication officer, admin)

The LMIS can greatly benefit from having additional persons with requisite skill set along with the retooling of existing staff to improve operations of the LMIS. Engaging in capacity building program is not only a necessity for the LMIS but is also essential in meeting its mandate as the national portal for employment. Type of Decision: Administrative Decision and Financial Implications Goals/Actions: 1. Engage additional staff to assist with the tasks of LMIS. Recommendations include: Employer Service Representatives (4), Career Development Officers (4), Web Developer (1), Business Analyst (1), Corporate Communication Officer (1), and Administrator (6) 2. Conduct training and re-training of new and current staff members 3. Introduce capacity building programs specific to the improvement of the LMIS Key Information gaps to be filled: 1. Limited capacity and instruments to effectively and regularly collect, process, analyze and disseminate relevant and reliable LMI 2. Limited Synergies between educational institutions/training agencies and the LMIS Rationale: 1. The building of capacity will help with ensuring that modern day standards are adhered to as well as keeping abreast of new and improved methods of operation. 2. The current staff compliment is inadequate to take on the mandate of being the national employment portal. 3. Improved ability to meet time lines and carry out assigned tasks in a timely manner 4. Provision of more efficient and effective service delivery 5. Increase assisted registration of both employers and jobseekers as specific satellite stations Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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Lead Agency The Ministry of Labour and Social Security, the Ministry of Finance and Planning along with Corporate Management Division would be responsible for facilitating and managing the process. .

Recommendation 10 Development of Programmes and Policies to reduce informality and lack of registration in the economy Type of Decision: Administrative Decision, Financial Implications, and Legislative Changes

Goals/Actions 1. The changing structure of the economy (see Table 7) from production

to services requires that

workers be better educated and possess some of the soft skills which are essential for functioning in today’s world. Employers and employees are to be targeted to reach those persons who have no basic qualification or training to become more equipped to deal with their present employment status. 2. Under-registration in the NIS needs to be addressed through direct contacts with the employees and the employers and public education strategies. The target populations should be all persons in the informal sector, private household employees and the agricultural sector. 3. Use mobile technologies to push information to target groups 4. The development of macro-economic policies aimed at reducing the informality and un-registration in the economy. Key Information gaps to be filled: 1. Inability to capture information on un-registration and informality in the labour market Rationale: 1. It will allow for a better educated and skilled workers will be more productive 2. Registration and participation in the NIS programme will alleviate old age poverty, thereby reducing dependency on the state. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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3. A reduction of the size of the informality will facilitate better management of the economy

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Appendix A: Producers of LMI in Jamaica The collection of LMI is carried out by five (5) major producers of labour market information in Jamaica, which are:     

Ministry of Labour and Social Security The Statistical Institute of Jamaica (STATIN) Planning Institute of Jamaica (PIOJ) HEART Trust/NTA Other educational and training institutions

1. Ministry of Labour and Social Security LMI gathered, analyzed and published by the MLSS are sourced mainly from administrative activities conducted by the Ministry, primary data collected from surveys and secondary data from other LMI providers. The administrative data are used to determine the demand for employment, inform the conditions and quality of employment, and the trends associated with social and employment programmes, which are geared towards assisting the poor and vulnerable, and increasing employment opportunities. The administrative data which collected by the MLSS include:                 

Number of Registration, Notified Vacancies and Placements by the Electronic Labour Exchange, distributed by Quarter and Sex Movement of Jamaican worker in the US on the MLSS Overseas Programme Licenses (New and Renewal) Issued for Private Employment Agencies Number of Work Permit Applications Received and Approved in Jamaica by Occupation and Industry Work Permit Exemptions by Selected Categories and Quarter CARICOM Skill Certificate Issued by Nationality and Sex Work Permit Recipients (New and Renewal) by Region of Origin Industrial Disputes Reported by Industry and Cause Work Stoppages Reported, Number of Workers Involved and Man-Days Lost by Industry Settlements Made by Proprietors, Amount Deposited and Number of Employers who made deposits through MLSS by Legislation Number of Persons Paid by Proprietors, Persons Paid from Deposits and amount Paid from deposits by Legislation Number of NIS beneficiaries and Type of Benefit Received by Sex New NIS Beneficiaries Disbursement of Pensions and Grants to New Beneficiaries PATH Education Compliance Rates Public Assistance Grant and Beneficiaries by Sex The Short Term Intervention Project Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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    

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Number of Beneficiaries for Education and Entrepreneurial Grant Number of Youths Placed in Employment through JEEP by Parish Disbursement of Rehabilitation Grants to JCPD Clients Referral of Children for Specialized Assistance Enrolment in abilities Foundation Training Courses by subject and Sex

MLSS Primary data Data is gathered from quantitative and qualitative studies to determine the demand and supply of occupations, skills and training in Jamaica. The studies include the National Labour Market Survey (NLMS) and the MLSS Sector Studies. The National Labour Market Survey (NLMS) which seeks to determine:                          

Types of Vacancies by Occupational Group Reasons for Vacant Positions Skills Needed Categories of Workers for which Demand Increased and Decrease Categories of Workers Projected to Increase and Decrease Employment Opportunities for Persons with Disabilities by Type of Disability Possible areas of Employment for Persons with Disabilities by Type of Disability Organizations and Vacancies by Parish Organizations with Vacancies by Sector Reorganization of Operations by Sector Types of Skills Needed by Occupational Group Skills Training Needs of Employers by Sectors Anticipated Changes in the Workforce by Sector Number of Occupations for Which Persons with Disabilities would be Consider by Type of Disability Possible Employment Opportunities for Persons with Disabilities by Sector Reasons for Positions Remaining Unfilled Average time taken to fill Vacancies Types of Training Provided by Employers Plans for Skills Training Reasons for Recruiting Workers from Abroad Changes to the Local Curricula Proposed by Employers Types of Reorganization Reasons for Increased Demand for Workers Reasons for Decreased Demand for Occupations Expected Change in Workforce Reasons for Anticipated Changes in Staff Complement Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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         

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Vacancies by Age Group of the Establishment Skills Needed by Occupational Group Due to Reorganization Vacancies Attributed to Skill Shortage by Sector Skill Shortage by the Age Group of the Organizations Skill Shortage by Size of Business Projected Increase in the Workforce by Occupational Group Projected Decrease in the Workforce by Occupational Group Plans to Increase Staff Complement Type of Organization Projected Occupations for Person with Disabilities

MLSS Sector Studies examine:    

Economic activities by parish which are likely to generate employment Employment from major growth sectors Investment in various sectors to boost employment Emerging and obsolete jobs

MLSS Secondary data Secondary data are also collected from STATIN, PIOJ and the Ministry of Education and placed on the LMIS website. Data are mainly collected to inform the supply side of the labour market (quality of labour force, wages, education and training outputs and programmes), economic conditions, poverty and other social conditions). These include:   



Demographic Statistics: - Population Age Distribution and Population Distributed by parish; Economic Data and Wages: - on Large Establishments and Economic Statistics; Labour Market Indicators: - Employment Status, Employed Labour Force by training Received, Unemployed Labour Force, Labour Force participation Rate, Unemployed Labour Force by Training Received, Labour Force and Employment. Education and Training: -Number of Candidates Sitting CSEC and CAPE, Literacy Rate, First Job Seekers by Level of Education, Enrolment by Level of Education, Percentage Passes in General Proficiency at Grade I – III

2. The Statistical Institute of Jamaica STATIN collects compiles, analyse, abstract and publish statistical information relating to the commercial, industrial, social, economic and general activities and condition of Jamaicans. The type of data collected by STATIN is quantitative and are captured using surveys. The type of data generated include economic: labour market earning, demographic and social statistics and census. Details are provided in Appendix A. Labour Market Information Systems- Review and Recommendation | Labour Market Reform Commission; Technology, Innovation and Productivity Committee |

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Economic  International  Merchandise trade  Production  Tourism  National Accounts  Price Indices Labour Market Earning  

Labour Force Employment and Earning

Demographic and Social Statistics    

Population Birth, Death and Migration Marriages and Divorce Methodology

Census  Agricultural Census  Population and Housing Census Main Labour Indicators collected by STATIN                

Total Population Population 14 years and over Labour Force Employed labour Force Unemployed labour Force Outside the Labour Force Employment Rate Unemployment Rate Job Seeking Rate Percentage of Population under 14 Percentage of Population 14 years and over Percentage of population 14 years plus Outside of Labour Force Labour force as a % age of Total population Labour force as a % of population 14+ Total Labour Force by Occupation Total Labour Force by Age Group

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Labour force Participation Rate by age group Labour Force by Industry Group Employed Labour force by Age Group Employed labour Force by Industry Employed Labour Force by Occupation Unemployment Rate by Age Unemployed Labour Force by Occupation Group in which last worked Unemployed Labour Force by Industry Group in which last worked Unemployed Labour Force by Age Group

3. Planning Institute of Jamaica This institution is responsible for leading the process of policy formulation on economic and social issues and external co-operation management to achieve sustainable development for the people of JAMAICA. The PIOJ uses administrative, as well as secondary data gathered by data producers from all sectors to produce reports for economic and social issues affecting the country. PIOJ also conducts and monitors studies carried out by the Institute and by Consultants. 4. HEART/Trust NTA HEART is responsible for the development of Vocational and Technical skills training programmes, for supporting the training requirements of the workplace and community. The Agency also provides career guidance for Jamaicans. HEART Administrative Data and Primary data The training institution uses administrative data relating to enrolment and graduations of its students. HEART conducts studies to inform its curriculum and improve the quality of its programmes. Research include:    

Tracer studies to determine the level of employment of graduates based on programmes and industry group which absorb graduates in relation to the level of training received Employers’ Satisfaction Survey to determine the level of satisfaction of employers with graduates Skill Demand Survey are used to find out areas of employment opportunities and determine the skills need in order to inform HEART Trust/NTA’s curriculum development Sector Studies order to determine the training needs of various sectors based projected occupational areas as well as emerging industries

Secondary data obtained from STATIN, MOE, PIOJ and MLSS are also provided through the institution’s Labour Market Information Portal (LMIP).

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5. Other educational and training institutions

Appendix B- NIS Form

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