Determining the skill needs in Mongolia’s labour market is one of the central tasks that
manpower planners and labour market analysts face. The development of skills policies that
meet labour market skills needs are a key instrument in the promotion of quality employment
and private sector growth.
In methodological terms, one of the major criticisms of traditional manpower planning
approaches is the assumption that there is a static relationship between labour and the
quantity of goods and services produced, as well as between labour productivity and education
or skills.1 However, after decades of experience it is recognized that labour markets are far
more complex and labour market actors are more unpredictable. In reality the relationship
between economic output, in terms of GDP, and employment levels is more dynamic, affected
by new forms of work organization, technological advancement, migration to just high light
some key factors.