The London Skills & Employment Observatory pulls together the multitude of information and data on London's labour market. As with any walk of life, there are terms and concepts that are commonly used in the field of skills and employment that have a specific meaning. The material available via this page aims to demystify the language used by explaining how different aspects are defined and measured. It is just a start, and more information will be added over time.

What does 'skills and employment' cover?

For the purposes of the London Skills & Employment Observatory, 'skills and employment' is used to refer to all things concerned with the labour market. We cover both people in work as well as those without work.

What is the labour market?

The labour market is where the demand for and supply of labour interact. For the Observatory, the labour market is taken to cover Greater London.
 

Demand for labour is represented by employers who have a need for work to be done, and who offer compensation to the employee(s) who do the work. This demand is determined by demand for employers' products (sometimes called consumer demand), export demand, and government policies, among other factors, and all of which are strongly inter-related.

The supply of labour includes all people who are either working or looking for work. People who are not working and not looking for work represent a potential supply of labour.