Labour market framework
The Office for National Statistics (ONS) has developed a framework for labour market statistics to describe the major concepts that exist within the labour market and their relationship to each other.
The framework adopted by ONS is based on the concepts of labour supply and demand. This approach has wide international acceptance, including by the International Labour Organisation (ILO).
Labour supply consists of people who are employed, as well as those people defined as unemployed or economically inactive, who can be considered to be potential labour supply. The ONS framework distinguishes between these three categories of worker, and also between the different working arrangements of those in employment such as employees, the self-employed and those on government schemes.
Labour demand is represented by employers who have a need for work to be done, and who offer compensation for this work to the employees who undertake it. This work is grouped by employers to form jobs. A job that has been identified by an employer, but which is not being undertaken by anyone, is defined as a vacancy.
A chart has been developed to provide a pictorial representation of the framework.
