Labor market data can be your friend, but you must take care not to abuse it. I began this post yesterday. Today, the conclusion.
As I promised, I'm not naming names, but I read a study recently that used nothing more than basic NAICS and SOC code data combined with some info from O*NET to draw conclusions like this:
Occupation Y requires more training and pays
better than Occupation X. Therefore we can place them on a career ladder with
Occupation Y as a move up from Occupation X. Occupation Z has
even higher training requirements and pays more than Occupation Y, so it
can be the next step up on the career ladder, like this:
Who
says that just because one occupation pays better, requires more
training and is within the same industry as another, that career
pathways between the two exist? That might sound logical, but the
authors provided no evidence that these pathways exist in the real
world.
I've heard from at least one nurse training program that had to learn this the hard way. They originally thought that since being a
registered nurse (RN) paid better and required more training than being
a certified nurse assistant (CNA) or licensed vocational (or practical) nurse (LVN or LPN), all they needed to meet the huge demand for RNs in their area was
train CNAs and LVNs to become RNs. They got the money and created the program, but they weren't having the success they'd imagined.
So they started talking to hospitals, nursing schools and nurses. That's when they discovered that the move from CNA or LVN to RN just never happened in the real world.
Real world experience and knowledge - it's the magic ingredient that's
missing from analysis based entirely on LMI data. Without it, you can
make major mistakes. In the case of the nursing program, they used this new information to redesign their program, and now it is a real world career pathway.
As a workforce board or nonprofit, you're outside the industry. That puts you at both an advantage and disadvantage when looking at labor market data. You can see opportunities for advancement that employers might not be able to see from their vantage point. But without talking to both employers and workers, you'll never know if those opportunities are real or theoretical.
Having good labor market data in hand will help when you go talk to employers. You can show them what you see in the data and ask if those career pathways exist at their company or across companies. If those pathways don't exist you can ask questions about who gets those better jobs and what prevents people in those lower-paid positions from moving up. Be sure to talk to current workers in those jobs too. Find out from them what are the barriers to advancement.
My point is this: labor market data is good for beginning to look at an industry. I'd say it's a necessary first step. But to get to know a sector or industry well enough to develop effective workforce development programs, you're going to have to do a lot more legwork.
Photo credit: leptonic.com
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