New report provides insight to help address NE workforce woes, brain drain puzzle

Students on the campus of the University of Nebraska at Kearney. (Courtesy of the University of Nebraska)

LINCOLN — Nebraska college graduates who grew up in the state are about twice as likely to stay and work here compared to their out-of-state peers, according to new research on what keeps talent in Cornhusker territory.

Key findings also show that having social and economic ties to the state, as well as previous work experience in Nebraska, go hand in hand with higher retention rates.

Yet substantial differences exist in talent retention rates across various degree fields. For example, agriculture students are among those most likely to flee, while manufacturing has been more of a magnet.

Such highlights are included in the new report from the Nebraska Statewide Workforce & Educational Reporting System, which focuses on factors influencing talent retention, or staying and working in Nebraska after graduation from college. The analysis tapped data from local sources including public high schools, public postsecondary institutions and the Nebraska Labor Department generally from 2013 to 2023.

Maximizing NE’s investment

What is NSWERS?

The Nebraska Statewide Workforce & Educational Reporting System, or NSWERS, is rooted in legislation dating to 2010. A law signed by Gov. Dave Heineman directed governing boards of educational institutions across the state to adopt a policy to share student data.

In 2019, the partners went further to legally form NSWERS as a joining public entity for mutual advantage regarding data initiatives.

The following year, legislation also directed the Nebraska Department of Labor to engage with workforce data.

In 2022, legislation signed by Gov. Pete Ricketts required an annual report and overview of the entity’s research.

In short, NSWERS is a data system intended to promote a strong economy, good jobs, business growth and thriving communities. It is unique, says its website, in that it is the only state resource that integrates education and workforce data over time, from preschool into the workforce — “creating a holistic view of the learning and earning journey.”

The information is considered momentous, said NSWERS executive director Matt Hastings, because state policymakers, legislators and business leaders have not previously had this level of targeted data to help solve burning questions of the day: How can Nebraska stop brain drain? Where are critical workforce gaps? How can Nebraska maximize the return on state investment in higher education?

“Historically speaking, we have not really had the data in Nebraska to really drill in on these questions,” said Hastings.

He said state officials mostly have relied on U.S. Census data, which is vital and useful in tracking general flows in and out of the state. But the research led by David Nguyen offers more specifics on, for instance, what types of students are staying and leaving.

“This really represents one of the first public products … to begin to really inform those kinds of discussions,” said Hastings.

Overall, a goal of NSWERS is to create an information source that creates a better understanding of how Nebraska’s education system is supporting workforce development.

The latest research, to be shared with state policymakers, notes that Nebraska invests heavily in higher education and that a payoff is realized if alumni remain employed in the state. However, since the 1970s, Nebraska has consistently faced brain drain — the exodus of highly trained or educated individuals.

Nguyen said such out-migration has accelerated in recent years, and that can lead to “economic stagnation.”

The hope is that the newly reported insights help state leaders develop policies and strategies to expand Nebraska’s workforce and position the state for economic growth, he and Hastings said.

Among highlights

Among the report’s highlights:

• The talent retention rate among four-year college graduates is 78% for in-state graduates (those who originated in or went to high school in Nebraska) vs. 38% for those who came to Nebraska to attend college. That suggests that to grow an additional 100 college-educated workers, Nebraska four-year public colleges would need to graduate, on average, an additional 130 in-state graduates or an additional 265 out-of-state graduates.
• For two-year colleges, the retention rate is 84% for in-state graduates and 37% for out-of-state graduates. So to grow an additional 100 college-educated workers, Nebraska two-year public colleges would need to graduate, on average, an additional 120 in-state graduates or an additional 275 out-of-state graduates.

Given the higher talent retention rates among in-state students, the report’s author said, it would be more efficient to grow Nebraska’s labor force by producing college-educated workers from within the state.

However, Nguyen said, that does not mean Nebraska colleges should pay less attention to students from outside the state. He said in the report that to encourage that population to stay and work in Nebraska, additional support could be provided — such as increasing work opportunities in the state during the college years.

Indeed, the analysis showed that internships and part-time jobs during the two years leading up to college graduation are crucial for retaining talent in Nebraska.

“People who earn more wages while they’re going to college seem to be more likely to stay and work in Nebraska,” Nguyen said.

According to his research, graduates who earned the equivalent of one to two summer internships of wages in Nebraska are about 5-10 percentage points more likely to stay and work in Nebraska compared to those with no earnings.

Talent retention rates differed, the report said, depending on a graduate’s degree field.

The three degree areas with the highest talent retention rates from 2015 to 2020 were: manufacturing (79%); transportation, distribution and logistics (74%); and architecture and construction (74%).

The theee with the lowest rates were: science, technology, engineering and mathematics, or STEM, at 50%; government and public administration at 53%; and agriculture, food & natural resources at 59%.

Notably, said Nguyen, two degree areas designated as high importance to Nebraska, STEM and agriculture, have graduates with the lowest rates of talent retention. Another high-priority field, manufacturing, boasts the highest retention rate.

Differences may be due to varying demands in Nebraska’s labor market, Nguyen said.

Hastings said next steps would be for policymakers to refine goals and use the new information to determine where investment or change can make programs more effective.

“If we do that better than other states around us, that’s a competitive advantage,” he said.

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