University of Minnesota
Office of Human Resources
http://www.umn.edu/ohr
612-625-2016

What Is a Labor Market?

A labor market is the market in which the University of Minnesota competes to attract and retain employees with the skills necessary to perform a particular job. Labor markets will vary from job to job. That market may be local, regional, or national; public sector, private sector, higher education, or all; all employers or a specific type of employer. Labor market information is obtained on a regular basis by Office of Human Resources Compensation staff from published reputable surveys. The Office of Human Resources Compensation staff will also conduct a limited number of custom salary surveys if there is little or no published data available for certain University jobs.

Labor market information is critical to ensure fair compensation and in order to attract and retain University employees. It also provides management at the University with meaningful information to assist in the effective allocation of resources. Department management within their budgeted fiscal resources ultimately decides upon compensation practices and philosophies.