Labour market information
Topic: Human Capital: Education, Health and Demographic Dividend · NCERT: Class 11, Ch 4 "Human Capital Formation in India"
Meaning
Labour market information is spending to learn about the job market. It covers salaries for different jobs, and the education and health markets. For example: do institutions give employable skills, and at what cost? Class 11 counts this spending as one of the five sources of human capital formation. It is needed for two decisions. First, whether and where to invest in human capital. Second, how to use the human capital already acquired in the most efficient way.
Example
A student in Patna compares the fees, placement records and starting salaries of a diploma in nursing and a BA degree before choosing a course. A trained welder searches the National Career Service portal to find which city pays welders the most. Both are spending time and money on labour market information.
Don't confuse with
- Education: education builds skills directly. Labour market information builds none. It helps people decide where to invest in skills and where to use them.