Strengthening College and Career Pathways: Why State Policymakers Should Embrace Return-On-Investment (ROI) Analyses

State-level studies can determine whether investments of time and funding are providing desired results for students and the workforce.

Today’s job market is evolving fast. To keep up, educators and policymakers are striving to connect students with the skills, training and additional education they need to successfully move into existing and emerging careers. Further, they are prioritizing careers and professions that provide a family-sustaining wage and allow for continued growth opportunities.

Career and technical education (CTE) plays a crucial role in this work and, increasingly, is shaping the educational landscape. CTE offers students both academic foundations and real-world technical skills during their high school and college years.

As demand grows and evolves for specific skills in the workforce, it is imperative for state policymakers to embrace what we refer to as return-on-investment (ROI) analyses. These data-based evaluations ensure that CTE programs are preparing students for success in the real world, equipping them with the relevant skills they need to secure well-paying jobs.

Understanding Career and Technical Education (CTE)

Career and technical education provides students with a unique opportunity to cultivate a robust academic foundation alongside practical, real-world skills. CTE programs bridge the gap between traditional education and the demands of the job market, preparing students for a seamless transition from the classroom to postsecondary and the workforce.

According to the U.S. Department of Education, 8,151,708 students participated in secondary career and technical education nationwide in 2021-22. Of these, 53.12% were male, and 46.83% were female.

Key features of career and technical education include:

Policymakers Can Use an ROI Analysis for Continuous Improvement of Career and Technical Education

By leveraging the insights gained from ROI analyses, state leaders can enhance their existing CTE policies in several ways:

The Biggest Challenge Policymakers Face: Addressing Data Gaps

Anyone who works in the pathways space will tell you that the key to success is collaboration, often among agencies that previously have not been asked to share data with one another.

One of the challenges is that CTE programs, and pathways work in general, can start in middle school and extend well beyond high school or college graduation. This means that departments of education, economic development and labor, along with local education agencies, have relevant roles. For a high-quality ROI analysis, they must work together to facilitate the gathering and sharing of available data.

Even if all desired data sets are not accessible within a state, the process of completing an initial ROI report can serve as a useful, foundational step. It can pave the way for more deliberate data gathering, data sharing and more comprehensive analyses over time—to the benefit of individual learners and the state’s overall workforce.

Rinse and Repeat: Maximizing the Benefits of Regular ROI Analyses

To gain the maximum benefits from ROI analyses, states should consider adopting a schedule for recurring assessments—rather than a “one and done” approach. Further, policymakers must be willing to act on the data, adjusting what they are funding and modifying policy direction where necessary to meet the evolving needs of students and the job market.

In our rapidly evolving job market, quality CTE programs are critical. By embracing return-on-investment analyses, state policymakers can ensure that CTE programs meet the career-planning needs of students and also, over time, contribute to the development of a skilled and competitive workforce.

A commitment by policymakers to data-driven decision-making is essential to strengthen career and college pathways, positioning students for success in the real world with the skills essential for securing well-paying jobs.

About the Authors

Nathan Oakley is the Senior Policy Director, Pathways, at ExcelinEd.

Solution Areas:

College & Career Pathways