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Using Workforce Information for Degree Program Planning in Texas

Core Content

This report, prepared for the Texas Higher Education Coordinating Board (THECB), discusses how workforce data can be used to inform degree and certificate program planning in Texas. It was commissioned in response to House Bill 1296, passed in May 2013, which requires the THECB to prepare a report on future workforce needs to guide the development and expansion of postsecondary education programs.

The report outlines the various data sources and modeling approaches available for analyzing workforce needs, including:

• Flow models: These compare the annual need for new workers (from growth and replacement) with the annual production of degrees and certificates.
• Stock models: These compare the current and projected supply of workers with the current and projected demand for occupations.
• Specific indicators: These include "hot jobs," wage changes, and vacancy rates to identify unmet workforce needs.

The report also highlights the importance of using a combination of quantitative data and qualitative insights from employers and industry experts to ensure comprehensive workforce analysis.

Main Views

• Legislative Context: House Bill 1296 mandates that workforce data be used to align higher education programs with labor market needs.
• Data Sources: The report reviews several key data sources, including:
  • The American Community Survey (ACS)
  • Bureau of Labor Statistics (BLS) and Texas Workforce Commission (TWC)
  • Commercial job listing services
  • Public and private sector data on education and employment outcomes
• Data Limitations: While these sources are valuable, they each have limitations, such as outdated information, limited geographic detail, and inconsistent alignment with degree programs.
• Strategic Use: Workforce data should be used not only for managing existing programs but also for periodic strategic planning at the state, regional, and institutional levels.
• New Tool Development: A new supply and demand growth matrix tool was developed to compare TWC demand projections with ACS-based supply estimates, offering more detailed insights into workforce needs.

Key Information

• Data Integration: Institutions and policymakers need to integrate data from multiple sources, including both quantitative and qualitative workforce information, to make informed decisions.
• Employer Engagement: The report emphasizes the need for more systematic and routine engagement with employers to better understand local labor market needs and improve program relevance.
• Regional Analysis: The study includes a detailed analysis of workforce needs across ten THECB regions, identifying key areas where unmet demand exists.
• Uncertainty Handling: Supply and demand growth estimates are classified as high, medium, or low, with some marked as uncertain due to low precision.
• Recommendations: The report provides several recommendations to improve the use of workforce data in degree program planning, including:
  • Regular strategic planning using workforce data
  • Developing a centralized resource for institutions to access and use workforce data
  • Improving data tools and ensuring statewide access
  • Enhancing employer input mechanisms to better align education with labor market demands

Figures and Tables

• Figure 2.1: Flow Model Structure
• Figure 2.2: Stock Model Structure
• Figure 2.3: THECB Regions and Workforce Development Areas (WDAs)
• Figure 4.1: Flow Model with Data Sources
• Figure 4.2: Stock Model with Data Sources
• Table S.1: Supply and Demand Growth Matrix Structure
• Table 2.1: Degrees Held by Computer Systems Analysts with a Baccalaureate Degree in Texas, 2010-11
• Table 3.1: Overview of States by Type of Tool or Analysis
• Table 4.1: Supply and Demand Growth Matrix Structure
• Table 4.2: Statewide Supply and Demand Growth Matrix

Summary of Key Findings

• Occupational Groups with High Demand and Low Supply: These include:
  • Religious workers
  • Other construction-related workers
  • Air transportation workers
• Occupational Groups with High Demand and Medium Supply: These include:
  • Financial specialists
  • Computer specialists
  • Engineers
  • Primary, secondary, and special education school teachers
  • Health technologists and technicians
• Occupational Groups with High Demand and Uncertain Supply: These include:
  • Mathematical science occupations
  • Architects, surveyors, and cartographers
  • Physical scientists
  • Legal support workers
  • Occupational therapy and physical therapist assistants and aides

Recommendations

1. Improve Planning Processes:

   • Use workforce data for regular strategic planning.
   • Develop a priority-setting process based on unmet workforce needs.
   • Complement data with discussions with industry representatives.

2. Enhance Data Resources:

   • Provide institutions with access to a centralized and comprehensive data resource.
   • Explore more cost-effective ways to ensure statewide access to data tools.
   • Identify and implement strategies to explore emerging trends and industries.

3. Systematic Employer Engagement:

   • Encourage more routine and structured interactions with employers.
   • Use tools like those developed by the Center for Employability Outcomes at Texas State Technical College to gather employer input.

4. Assess Existing Capacity:

   • Periodically assess the capacity of institutions in the region to address specific workforce needs.
   • Prevent duplication of efforts by sharing capacity information.

5. Use of the Supply and Demand Growth Matrix:

   • Apply the matrix tool to guide regional and statewide program development.
   • Use the matrix in conjunction with other data tools to identify appropriate postsecondary programs.

Conclusion

This report underscores the importance of using workforce data in a systematic and comprehensive manner to align higher education programs with labor market needs. It provides a framework for analyzing and utilizing such data, along with recommendations for improving data integration, employer engagement, and strategic planning processes in Texas.