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Are Higher Education Institutions Responsive to Changes in the Labor Market?


Higher education is a key driver of the economic growth of countries. Any country hopes that its universities, including state colleges and universities (SUCs) and private higher education institutions (PHEIs), produce the manpower needed to propel the country into high, sustained, and equitable development. This can be achieved if its universities respond well to changes in the labor market. This study seeks to review and assess how well the SUCs and PHEIs respond to regional market demands through wage premium analysis and their experience in introducing new program offerings, changing curriculums, and closing programs. To achieve this, it analyzes the developments in labor market outcomes such as wage premiums at the discipline level derived using data from the Labor Force Survey. It also uses focus group discussions with both SUCs and PHEIs to document and understand the relative ease of introducing changes into their academic programs in response to labor market changes.

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