The College Scorecard from the U.S. Department of Education can help students compare postsecondary institutions on a variety of factors, including costs, employment, graduation rate, average amount borrowed, and loan default rate. (Image via https://collegescorecard.ed.gov/)
For years, the college access and attainment community has focused most of its attention on financial fit and academic match as key elements in the college advising and selection process. However, as the cost of college continues to rise, and the average
student loan debt along with it, advisers are beginning to incorporate labor market and earnings data into their advising toolbox.
Advisers want to make sure their students are getting the best return possible on their investment in a postsecondary degree.
The good news: Earnings data at the national, state, and local levels have become more easily accessible.
What are labor market and earnings data and where are they found?
Labor market and earnings data include current and projected labor supply and demand, trends in hiring and job outlook, compensation and earnings, employment statistics, and the demographics of the workforce. These data can be useful in making decisions
about courses of study and the postsecondary institutions that offer them, and, ultimately, which career paths those programs offer.
Although these data have been available for many years, only recently have advisers started using them to help students make postsecondary decisions.
Here are some key sources of labor market and earnings data:
The U.S. Census Bureau collects and reports data on the state of the nation's workforce, including employment and unemployment levels within certain geographic areas and
industries.
ONet uses U.S. Department of Labor data to provide more information on jobs themselves, including related careers, required knowledge, skills and abilities, required education and credentials, where to get
the credential, and a wages and employment trends feature that can be searched by geographic location.
Both the Occupational Outlook Handbook and ONet include free training guides for users and teachers/advisers.
School- and program-level outcomes can also help students make decisions about postsecondary and career options. These data provide earnings and employment outcomes by postsecondary institution, major, program, and/or degree/credential.
The College Scorecard compares postsecondary institutions on a variety of factors, including costs, employment, graduation rate, average amount borrowed, and loan default rate.
Launch My Career uses state-level data to demonstrate the return on investment (ROI) for that
state’s postsecondary institutions, specific majors, and degree programs. The goal is to show students data on the long-term outcomes – including earnings potential – before they enroll in an institution and pursue a certain degree and field of
study.
The Good Jobs Project based at Georgetown University’s Center for Education and the Workforce has searchable and interactive tools that show the ROI on degrees and colleges, state occupational
trends, and “good jobs” that do not require a bachelor’s degree.
The online, searchable resources mentioned above streamline the volumes of data available on labor market trends and earnings and present them in a way that is understandable and actionable for students.
Some NCAN member programs are tracking the workforce and earnings outcomes of their students. In these cases, the data are helpful to assess the results of their advising model. They also allow programs to create a database specific to a close-knit set
of partners – including postsecondary institutions and local employers – with whom they commonly work and to which their students commonly matriculate.
Why are labor market and earnings data useful in postsecondary advising?
Advisers are encouraging students to use these data to balance college costs and the debt they might incur with the earning potential of one degree, major, or credential over another. This does not mean students should always pursue the highest-earning
fields. It does mean they should understand the potential earnings of their chosen field and consider the amount they will pay for their education – especially debt incurred – when making decisions about where to attend.
Advisers must strike a balance between encouraging students to follow their passions and focusing solely on potential future earnings. The role of the adviser is not necessarily to steer their students toward in-demand, high-wage jobs. Advisers can make
students aware of industries with job opportunities and growth potential and make sure students are informed about the earnings potential of the career paths they are considering.
How can these data be integrated into the advising process?
Advisers can use labor market and earnings data to help students make decisions about:
The value of investing in postsecondary education, in terms of career and financial benefits.
Where to apply and what to study based on a student’s interests, financial situation, and earning potential.
How much debt to take on given the future earnings potential of their chosen major and/or career.
Workforce and earnings data should be used along with other information to help students make decisions about their postsecondary options and, ultimately, achieve their career goals.
Students report the No. 1 reason they attend college is to get a good job. But to make an informed college choice, students need to understand 1) the best financial fit for paying for college, 2) the academic match that will help them pursue a particular
career, and 3) whether estimated future earnings are in line with their expectations and any anticipated student debt.
Understanding how academic majors fit into students' career goals, and being realistic about the potential earnings from each chosen path, is the next frontier in college advising.
For more information on incorporating labor market and earnings data into college advising, take a look at this resource published by AEI and the chapter NCAN contributed to it.
This article is part of NCAN’s College Students and Career Success series funded by the Scheidel Foundation. In this series of blog posts and webinars, NCAN is sharing tried-and-true strategies, program activities, tools, and more focused on career support for postsecondary students.
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