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CIPD Level 55HR02AC 1.2

Understanding Labour Market Dynamics

5HR02Talent management and workforce planning

This CIPD Level 5 video on Understanding Labour Market Dynamics, part of unit 5HR02 Talent Management and Workforce Planning, explores how shifting labour market conditions directly influence organisational resourcing decisions. The content examines the distinction between tight and loose labour markets, analyses trends in labour and skills supply and demand using frameworks such as PESTLE, and explains how organisations adapt their employer branding, recruitment methods, retention strategies, and long-term planning in response to external pressures. By watching this video, you'll develop the knowledge required to meet assessment criteria AC 1.2, enabling you to confidently explain the critical relationship between labour market dynamics and strategic resourcing choices.

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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: Understanding Labour Market Dynamics

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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