This guide is a part of the European Training Foundation (ETF), ILO and the European Centre for the Development of Vocational Training (Cedefop) series of guides on skills anticipation and matching. The main goal of this guide is to provide guidance through labour market monitoring and analyses of skills supply and demand. It is an introductory tool for everyone who wants to understand how labour market information (LMI) can be used for better anticipation and matching of skills demand and supply. It provides advice and recommendations for policy- and decision-makers on how to respond to market signals and how to react to early warning messages driven by LMI. Technical analysts and professionals can use this guide as a source of inspiration on how LMI systems can be further developed and used for policy analyses and interventions.