Labor market data have gained relevance in the higher education sector as big data grows, new analytical platforms emerge and pressure for transparency and academic relevance increases.
This phenomenon is also occurring at a time when universities are under scrutiny of students and their families who are questioning the costs of higher education in relation to the return on this investment in terms of job opportunities.
A study conducted by the Center for Education and Employment Research at Rutgers University revealed that market information is used in study program and curriculum reviews, recruitment and enrollment strategies, and professional advice for students due to the enormous proliferation of data availability.
"These data are entering higher education system at a time when matters about how to help prepare students for careers have grown in importance and interest," said Michelle Van Noy, Director of the Research Center in this report. "Students come to higher education mostly because they want to prepare themselves for a good career."
However, the way and the reasons why institutions choose to use market data vary widely. Experts say that, for many institutions, especially four-year universities, the process of integrating this information is happening slowly and not smoothly.
Use of Data in Public and Private Universities
Rutgers' report considered 400 surveys of public and private higher education administrators. One of the most notable patterns was that two-year institutions tended to use market information more intensively and in a more centralized manner than four-year universities.
For example, nearly 60% of two-year colleges reported using private data providers, while only half of respondents from public four-year universities and about one-third of private institutions reported doing the same.
Meanwhile, similarities were found in terms of what was sought from the labor market information. 96% of two-year colleges, 70% of public four-year universities and 60% of private four-year universities said they used the data to research required skills.
A "Public Demand"
Martin Van Der Werf, Director of Education Policy at Georgetown University Center on Education and the Workforce, said in that report that market data are "an increasingly important tool", but it is one of the many important factors that universities must consider.
"Universities cannot simply teach to meet the current needs of the labor market; they must think about how the market is evolving and what skills employers find most valuable."
"Public demand and probably public policy is forcing them to take a closer look at labor market information. But, on the other hand, he added that there's a big current in those institutions that says: 'We're not just here to train people for specific jobs in a specific company; we're here to provide a comprehensive education.'"
Benchlab: Market Information and Top Skills in Demand
Through our leading higher education data and benchmarking portal, universities and companies in the sector have access to live information on how the job offer is moving in a given country or territory and what positions and skills are most in demand.
Our Network Skills and Job Offering reports use artificial intelligence models and perform a 360-degree sweep of LinkedIn, helping match top job searches with academic programs.
These recognition models allow universities to detect the most demanded positions, the technologies required and the hard and soft skills, all of which provides three major benefits:
✅ Closing the gap between educational offer and labor demand.
✅ Aligning the academic offering with industry.
✅ Making a constant adjustment of programs and skills.
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