This report contains procedural guidelines to assist local Comprehensive Employment and Training Act (CETA) prime sponsor staff members in developing a labor market analysis of the local economy. The guidelines are designed to be used in conjunction with other materials that have been developed by the United States Department of Labor. The focus of the report is on "the how" of preparing a labor market analysis. The report consists of a set of 16 procedures, which, taken together, provide a step-by-step guide for the prime sponsor's staff members who are responsible for conducting an analysis of the local labor market. Under each procedure are listed concerns and pertinent issues that need to be considered. The procedures are designed as models; they can be adapted to meet the needs of each CETA agency. Following the main body of the report, three appendixes provide an in-depth discussion of important issues associated with conducting a labor market analysis. These issues are: (1) data display, (2) data collection, and (3) the development of a labor market information management reporting system. (KC)