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CIPD Level 55HR02AC 1.2

Analysing Labour Market Trends Using PESTLE

5HR02Talent management and workforce planning

In this CIPD Level 5 video for unit 5HR02 – Talent management and workforce planning, you'll explore how to analyse labour market trends using the PESTLE framework to understand changing labour market conditions. The video explains the critical differences between tight and loose labour markets, examines trends in labour and skills supply and demand, and demonstrates how political, economic, social, technological, legal, and environmental factors influence these dynamics. You'll discover how organisations use this analysis to inform key resourcing decisions, including recruitment methods, employer branding, retention strategies, and long-term workforce planning. By the end, you'll understand how to apply PESTLE analysis to assess labour market pressures and make evidence-based recommendations for your organisation's talent management strategy.

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Assessment Criteria 1.2

Explain the impact of changing labour market conditions on resourcing decisions.

Indicative Content

Changing labour market conditions: differences between tight and loose labour markets; trends in the demand and supply of labour and skills; reasons for trends using analytical models such as political, economic, social, technological, legal, environmental. Resourcing decisions: may be taken in relation to employer branding, recruitment methods, retention strategies, reorganisations, development decisions and long-term planning, critical incidents, national, international and global pressures and crises, changing faces and methods of working.

What You'll Learn

Video covering: Analysing Labour Market Trends Using PESTLE

About 5HR02Talent management and workforce planning

CIPD Level 5
5HR02
Learning Outcome 1

This unit focuses on the impact of effective workforce planning in considering the development of diverse talent pools and how to contract and onboard the workforce. It also includes analysis of the potential cost to the organisation if this is poorly managed and the tools and interventions required to mitigate this risk.

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