FL, KY, TX, Others Use Data to Improve Postsecondary Graduates’ Chances of Finding, Keeping Well-Paying Jobs

Using data to track recent graduates in the workforce helps ensure postsecondary education institutions are preparing graduates for successful careers, according to a report recently released by the National Governors Association (NGA) – Tracking Graduates into the Workforce: Connecting Education and Labor Market Data. In this report, NGA contends that accurate, real-time information is a key element of functional labor markets. The NGA report starts with a discussion about the importance of connecting postsecondary education and training programs with labor market data to spur job creation, address the needs of industry, and stimulate economic prosperity. Through the report, NGA highlights new practices in Florida, Kentucky, and a multistate collaboration (between Hawaii, Idaho, Oregon, and Washington) that NGA authors believe are promising strategies to better connecting postsecondary and training programs with the needs of industry. In addition to the NGA report, the Rand Corporation released a report on how the state of Texas is using workforce information to make informed decisions to develop or expand postsecondary education programs.

The authors of the NGA report contend that connecting postsecondary education and training programs with labor market data provides benefits for employers, students, workers, economic development professions, policymakers, and governors. In the short-term, the data allows employers and employees to make important decisions about hiring, wages, training, and other activities related to the job market. In the long-term, the data provides insight into trends, including projections about future job opportunities, to help students and workers determine which academic courses or training opportunities. For government officials and nonprofit economic development professionals, data can help make sure that postsecondary programs and workforce training programs are using data effectively and efficiently to improve graduates’ chances of finding and keeping good jobs. NGA researchers also believe that there are long-term economic development benefits to states because businesses can use this data to determine where to locate and invest, which technologies to use, and what kind of training to offer employees.

In Florida, the state manages a statewide collection and reporting system that collects and provides information about the outcomes of former students across most of the state’s education and training institutions. Launched in 1988, the Florida Education and Training Placement Information Program (FETPIP) includes longitudinal data on students from public school districts, the predominately two-year Florida colleges, public universities, private for-profit proprietary schools licensed by the Commission for Independent Education, and the 31 members of the Independent Colleges and Universities of Florida (ICUF—private, nonprofit universities).

The authors contend that FETPIP data has allowed the state to better align its education system to the projected needs of individuals and employers. Semi-annually, Gov. Rick Scott’s Blue Ribbon Task Force on Higher Education Reform used the data to understand the demand for postsecondary graduates and inform legislative proposals including targeted education and training programs that help Floridians obtain the knowledge, skills, and certifications for occupations that are in high demand, fast growing, and offer high earnings.

The Kentucky Community and Technical Colleges System (KCTCS) manages a database that links education and wage records to help students select programs of study and program staff to make informed decisions on whether to expand or close specific programs. Launched in 2005, the program emphasizes responsiveness to local economic needs and meets state and local training needs. The KCTCS database matches its enrollment records with state level wage and employment records.

The Western Interstate Commission for Higher Education manages a pilot program that connects education and wage data across four states (Hawaii, Idaho, Oregon, and Washington) to track labor migration. The Multistate Longitudinal Data Exchange (MLDE) program is intended to give institutions and policymakers a fuller picture of the programs’ performance as well as information about the migration of human capital across state borders. This project followed students who had graduated from high school in 2005 or first time-college undergraduates enrolled during the 2005–2006 academic year until 2011. The pilot project highlights data about the cross-state migration of postsecondary graduates within a region of the United States.

Earlier this year, the Rand Corporation released a research report – Using Workforce Information for Degree Program Planning in Texas. The report was developed in response to the passage of House Bill 1296 by the Texas State Legislature in 2013 that required a report on Texas’ future workforce needs that would help inform decisions to develop or expand postsecondary education programs. In the report, Rand researchers look at several commonly used workforce data sources and services to examine their effectiveness in accurately measuring the workforce trends that can be used to make education and training programs more effective and efficient.

The authors conclude that all of the data sources analyzed can contribute to understanding workforce needs and, hence, planning for higher education programs. However, each data source has limitations, so none of the sources should be used on its own. The authors also contend that both qualitative (e.g., conversations with business leaders) and quantitative data are necessary to make the best decisions regarding education and training programs that fill the needs of industry.

To help Texas better understand how to connect workforce data with education/training programs, the authors provide highlights of several current practices in using workforce data for planning and program development at the state, regional, and institutional levels in a variety of ways. They also provide an overview of tools and other strategies that other states and regions use to align their efforts with the needs of industry.

Each of these reports outlines several recommendations and lessons learned that may benefit any state or region looking to better connect workforce data with their education/training efforts including:

• Long-term investment in and maintenance of a longitudinal system create a powerful tool that shows trends over time;
• By combining data from multiple sources, a state can answer questions about a broader range of programmatic outcomes;
• Institutions should be encouraged to open or expand programs in high-wage, high-demand sectors and to reallocate resources from postsecondary programs that lead to low-wage, low-demand jobs;
• Individual-level longitudinal records can be linked across multiple states’ education and workforce sector;
• Linking data across state lines reveals considerable mobility among graduates and employees; and,
• To make the best decision on opening, closing, or changing education/training programs, states should use both qualitative and quantitative data.