In a major stride toward addressing employment challenges, South Africa has officially launched its Labour Market Information System (LMIS), a groundbreaking platform aimed at revolutionising how labour data is collected, analysed, and shared. The LMIS, unveiled in September 2024, is a collaborative effort led by the Department of Employment and Labour (DEL), the International Labour Organisation (ILO) and Statistics South Africa (Stats SA), following years of preparation and international training.

Designed to bridge critical information gaps, the system provides policymakers, researchers, and stakeholders with a centralised, accessible repository of labour market insights. This innovative tool not only aligns with global Decent Work and Sustainable Development Goals but also assists to streamline decision-making and empower South Africa’s workforce in a rapidly evolving economic landscape.

LMI helps lower the costs of job hunting and hiring by providing clear information, reducing the guesswork for both job seekers and employers.

What is a Labour Market Information (LMI) System?

A Labour Market Information (LMI) System is a framework for collecting, organising, analysing, and sharing information about the labour market, including job trends and key changes. According to the European Union Commission (2015), it supports the creation and evaluation of policies by providing accurate and accessible data to help guide decisions in employment, education, and training.

The system aims to close the information gap between data producers and users by offering free access to key stakeholders, such as government bodies, employers, unions, universities, and training institutions such as the Sector Education and Training Authority (SETA). It also relies on collaboration among various entities, including public and private employment services, education providers, and social partners, operating at local, regional, national, and sectoral levels.

In South Africa, Statistics South Africa is the primary agency for labour market data, as mandated by the Statistics Council Act of 1999. Other sources, such as administrative data and research from universities, also play a role in providing complementary insights to build a comprehensive labour market picture.

The Role of Labour Market Information Systems in Policy and Planning

Labour Market Information (LMI) Systems are vital tools for shaping and assessing public policies. They provide strategic insights to reduce gaps in knowledge and improve decision-making by systematically delivering accurate and timely labour market data.

In recent years, countries in the Southern African Development Community (SADC) have established “labour market observatories” to better understand employment trends and offer accessible data for policymakers and researchers. These initiatives aim to support informed decisions and foster better labour market outcomes.

South Africa’s Labour Market Information (LMI) System Master Plan takes this approach further, serving as a comprehensive guide to labour market concepts and data. The plan consolidates all relevant information into a single repository for easy access and analysis by stakeholders, including government institutions, employers, and researchers. It aligns with key Decent Work (DW) indicators and Sustainable Development Goals (SDGs), specifying data sources and methodologies to ensure accuracy and transparency. The International Labour Organization (ILO) defines decent work as employment that offers fair income, workplace security, and social protection for everyone. It also promotes opportunities for personal growth, social inclusion, and equality, ensuring that individuals can take part in decisions that shape their lives. Decent work emphasises equal opportunities and fair treatment for both women and men.

The ultimate goal is to provide a fully functional LMI System that equips stakeholders with a deeper understanding of the country’s labour market dynamics. Until this system is fully operational, updates to key indicators will continue to support effective policy development and monitoring.

Explore the Labour Market Information System (LMI) and access a wealth of labour market insights. Visit the Stats SA website or click here to explore the DEL LMIS.Stat Data Explorer: https://de-lmis.labour.gov.za/.