Big data in labour market monitoring

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October 2015 Big data in labour market monitoring Emilio Colombo CRISP Interuniversity Research centre On public services University of Milano - Bicocca Viale dell Innovazione 10, 20126 Milan, Italy e- mail: crisp@crisp- org.it web: www.crisp- org.it

Technology, web and vacancies Technology has radically changed the way people work but also the way people look for work. The web is becoming an increasingly important channel for posang vacancies and in general for matching labour demand and supply Specialised websites are emerging alongside with general ones Social networks are becoming popular in this domain. Some of them have a professional profile e.g. Linkedn How can we extract informaaon from the web? What criteria should be used? What are the limits? 2

Technology and the labour market Technological change, globalisaaon etc. are exerang rapid and profound changes to the labour market, to occupaaons and to their skill requirements. As a consequence the problem of skill mismatch is emerging as one of the most important challenges that Europe will face in the next decades. Skill mismatch has a lot to do with the difficulty in correctly define and classify skills (mainly soo skills). The tradiaonal soluaon has been so far the use of skill surveys, however technology can be itself the soluaon: web based tools can provide useful insights. 3

Problem with skill surveys 1. They are costly, considering direct (implementaaon) and indirect (opportunity cost) costs. 2. Their implementa4on is not easy, thus they cannot have a high frequency. 3. They have a top- down approach, i.e. soo skills and occupaaon- specific skills are generally pre- defined. 4. What you have is what you designed. Not more someames less. 4

How web vacancies may help 1. Less costly to be implemented. High iniaal cost but low marginal cost. 2. No implementa4on lag. Almost real Ame data. 3. BoAom- up approach, richer classificaaon especially useful for some soo skills and paracularly for occupaaon- specific skills. 4. Informa4on is always there. Unless there are storage problems you can also go back and retrieve what you missed. 5

Limits of web analysis Cri4cal aspects of web based data 1. Ethical issues. Scraping is not technically illegal, however when conducted on a large scale should be done with the agreement of the website. 2. Sampling issues. The measured universe may not coincide with the universe of the data. Not all vacancies are posted on the web, some types are overrepresented other are totally absent (doctors, university professors, public servants etc.) Same for sectors and regions (more on this below). In general the sample is not designed to be representaave (as in surveys) but is extracted from a given (biased) universe. 6

Limits of web analysis Cri4cal aspects of web based data 3. Technical issues. Techniques and tools are rather specialised and require a great deal of knowledge. 4. Classifica4on issues. Data on the web are not classified according to a determined standard (Nace, Isco etc.). There is the problem in creaang a common standard for comparison and cross analysis. 7

Sampling issues Web based data tend to offer a biased representaaon of the real labour market. High skill occupaaons tend to be overrepresented Industrial sectors are overrepresented while services underrepresented Digital divides at regional and age level affect the type of vacancies posted. For all these reasons these tools are extremely useful but cannot subsatute standard tools such as surveys or administraave data. They provide a complementary informaaon 8

Scaling up In Europe how do we deal with vacancies posted in different languages with different standards, codes etc? CRISP is conducang a research project for Cedefop in developing a working prototype for the analysis of web based data Countries involved: Italy, Germany, Ireland, UK, Czech Republic We have completed the data collecaon phase (3 million vacancies in 3 months) We are currently conducang the data analysis and we will soon complete the prototype. Stay tuned on Cedefop s website to learn for future developments 9

THANK YOU For your attention CRISP University of Milano-Bicocca Viale dell Innovazione 10, 20126 Milan, italy Web: www.crisp-org.it E-mail: crisp@crisp-org.it