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Classifying occupations using web-based job advertisements: an application to STEM and creative occupations

Author

Listed:
  • Antonio Lima
  • Hasan Bakhshi

Abstract

Rapid technological, social and economic change is having significant impacts on the nature of jobs. In fast-changing environments it is crucial that policymakers have a clear and timely picture of the labour market. Policymakers use standardised occupational classifications, such as the Office for National Statistics’ Standard Occupational Classification (SOC) in the UK to analyse the labour market. These permit the occupational composition of the workforce to be tracked on a consistent and transparent basis over time and across industrial sectors. However, such systems are by their nature costly to maintain, slow to adapt and not very flexible. For that reason, additional tools are needed. At the same time, policymakers over the world are revisiting how active skills development policies can be used to equip workers with the capabilities needed to meet the new labour market realities. There is in parallel a desire for more granular understandings of what skills combinations are required of occupations, in part so that policymakers are better sighted on how individuals can redeploy these skills as and when employer demands change further. In this paper, we investigate the possibility of complementing traditional occupational classifications with more flexible methods centred around employers’ characterisations of the skills and knowledge requirements of occupations as presented in job advertisements. We use data science methods to classify job advertisements as STEM or non-STEM (Science, Technology, Engineering and Mathematics) and creative or non-creative, based on the content of ads in a database of UK job ads posted online belonging to Boston-based job market analytics company, Burning Glass Technologies. In doing so, we first characterise each SOC code in terms of its skill make-up; this step allows us to describe each SOC skillset as a mathematical object that can be compared with other skillsets. Then we develop a classifier that predicts the SOC code of a job based on its required skills. Finally, we develop two classifiers that decide whether a job vacancy is STEM/non-STEM and creative/non-creative, based again on its skill requirements.

Suggested Citation

  • Antonio Lima & Hasan Bakhshi, 2018. "Classifying occupations using web-based job advertisements: an application to STEM and creative occupations," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2018-08, Economic Statistics Centre of Excellence (ESCoE).
  • Handle: RePEc:nsr:escoed:escoe-dp-2018-08
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    More about this item

    Keywords

    labour demand; occupational classification; online job adverts; big data; machine learning; STEM; STEAM; creative economy;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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