Here’s how NC defines ‘in-demand’ and ‘high-wage’ jobs — and how that compares to other states

As states prepare to implement Workforce Pell — a historic expansion of federal Pell Grants for students in short-term workforce training programs — all eyes have turned to a key eligibility requirement: programs must align with “high-skill, high-wage, or in-demand industry sectors or occupations,” among other criteria.

This phrase — high-skill, high-wage, or in-demand — originated in 2018 when it was included in the Carl D. Perkins Career and Technical Education Act, also known as Perkins V. According to New America, the phrase is relatively inconsequential under Perkins V, which distributes $1.4 billion in state formula grants to support career and technical education (CTE) programs.

But, now that the phrase has created part of the standard for Workforce Pell eligibility, how it is interpreted “could affect how hundreds of millions of dollars in federal student aid are distributed.”

In February, New America released a scan of how all 50 states define “in-demand” and “high-wage” occupations under Perkins V, shedding light on how North Carolina’s approach compares to other states.

Because nearly every state defines “high-skill” the same way — requiring “significant training, experience, or a credential beyond high school” — state-by-state definitions for “high-skill” are not included in the scan.

Importantly, states are not bound to use these same definitions for Workforce Pell, and the scan notes that “what works for the universe of Perkins programs may not work as well for a student aid program for a subset of very short-term workforce development programs.”

As of February, North Carolina was still in the process of finalizing how it will define these terms under Workforce Pell.

During a presentation to the State Board of Community Colleges in March, Andrea Desantis, assistant secretary for workforce solutions at the North Carolina Department of Commerce, said the state plans to share a draft Workforce Pell policy for public comment soon. Then, the NCWorks Commission, the state’s workforce development board, plans to approve the Workforce Pell policy and application during its next meeting on May 13.

Putting state implementation of Workforce Pell on a long-term runway, trying and testing different definitions and strategies over time, will help ensure states get the greatest value from the program for their learners and their economies.

— New America article

‘In-demand’

North Carolina defines “in-demand” occupations under Perkins V by identifying occupations that are “currently or forecasted to experience worker shortages” — taking into consideration only labor market data.

By comparison, 19 states use both labor market data and wages when determining if an occupation is “in-demand,” according to New America. Approaches include rating systems that classify occupations through a composite score that considers both wages and labor market demand and definitions that exclude certain occupations if wages are too low.

For example:

• Alabama uses a five-star rubric to determine if an occupation is in-demand in a region. First, occupations must meet three criteria — 70%+ of median regional wage; annual positive growth for a 10-year period; and projected to have a minimum of 15 openings per year. Then, occupations must either have median wages exceeding a wage threshold or require a postsecondary degree, certificate, or credential. To be considered in-demand statewide, an occupation must be in-demand in at least three regions.
• Indiana’s Top Jobs system uses four weighted factors to rank occupations from one to five stars: current and anticipated demand (weighted 35%); projected growth (25%); average earnings, earnings growth, and ratio of earnings to 75% of the state’s average wage (12%); and retention, “in order to suppress high-churn occupations” (28%).
• Virginia uses three criteria to create its high-demand occupation list: a five-year job change greater than -0.5%; 5-year average annual openings equal to or greater than 100; and median annual earnings at or above 200% of the poverty level. Additionally, if at least 10 registered apprentices were initiated between 2020-2025, an occupation is considered high demand.

According to New America’s analysis, three states make exceptions for certain occupations to be considered “in-demand” even if all criteria are not met. For example, some occupations facing worker shortages, such as teachers, may not meet wage thresholds.

Georgia defines in-demand careers as occupations that meet three criteria: a positive projected growth rate over a 10-year period; annual job openings equal to or greater than the median job openings; and wages equal to or above 75% of the state’s median wage. However, Georgia allows occupations “determined to be a public service or public good” to be considered in-demand if they do not meet those criteria.

Georgia’s statewide high-demand career list includes numerous education positions, including special education teachers, substitute teachers, and school social workers.

Pennsylvania’s high-priority occupations are identified using employment projections, and any occupations that pay less than 200% of the federal poverty level for one adult and one child are screened out. However, occupations with lower wages than this threshold can still qualify as high priority if “substantial opportunities exist for advancement into higher-level jobs” or “opportunities exist to invest workforce dollars in way that improve job quality and/or strengthen career advancement.”

‘High-wage’

North Carolina defines “high-wage” occupations under Perkins V as occupations “paying wages at or above the median income for the relevant region or state.”

This reflects the most most common threshold for “high wage” — 16 states use state or regional median wage, according to New America.

According to New America’s analysis, other reference points when defining high-wage include:

…regional average wage level (8 states); the Massachusetts Institute of Technology’s Living Wage calculator (4 states and the District of Columbia); the federal poverty level (3 states), ranging from 185 to 200 percent of this level; and state median income (3 states).

— New America article