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Labor Market Alignment in North Carolina
Measuring how well the skills of college graduates match the needs of North Carolina employers
What Does Labor Market Alignment Mean?
Labor market alignment measures the critical connection between the skills that college graduates possess and the actual needs of North Carolina employers. This metric serves as a vital indicator of how effectively our state's postsecondary education system prepares students for success in today's dynamic job market.
When alignment is strong, graduates transition smoothly into careers that match their education and training. When alignment weakens, both graduates and employers face challenges: talented individuals struggle to find suitable positions while businesses cannot fill critical vacancies with qualified candidates.
For North Carolina policymakers and workforce development professionals, this measure provides essential insights into whether our educational investments are translating into economic opportunity and whether our postsecondary institutions are responsive to evolving labor market demands.
84%
Current Rate
2022-2024 average alignment
85%
2030 Goal
Target alignment rate
Understanding the Data
Skills Supply
Measures the types and volume of credentials awarded by North Carolina's postsecondary institutions, including community colleges, universities, and technical training programs.
Employer Demand
Analyzes current job openings across North Carolina to identify which skills, certifications, and degree types employers are actively seeking in candidates.
Alignment Match
Calculates the percentage of graduates whose skills and credentials directly correspond to available job opportunities in the state's labor market.
The 84% alignment rate indicates that more than eight out of every ten graduates from state postsecondary institutions possess skills and credentials that match actual job openings. This demonstrates substantial, though not perfect, coordination between educational outcomes and workforce needs.
Current Performance and Future Goals
Where We Stand Today
North Carolina's labor market alignment currently stands at 84% based on the most recently available data from 2022-2024. This means that more than eight of every ten graduates from state postsecondary institutions—including community colleges, public universities, and private institutions—have acquired skills and credentials that align with actual job openings across the state.
This performance reflects significant coordination between educational institutions and workforce needs. However, it also indicates that approximately 16% of graduates may face challenges finding employment that matches their educational preparation, or may need to relocate or pursue additional training.
Our 2030 Target
By 2030, North Carolina aims to achieve an 85% labor market alignment rate. While this represents only a one percentage point increase, it translates to thousands of additional graduates successfully matched with employer needs annually, strengthening both individual economic outcomes and the state's competitive position.
Why Labor Market Alignment Matters
Growing Workforce Transformation
North Carolina employers in certain sectors already face significant challenges filling vacancies with qualified candidates. The myFutureNC Call-to-Action highlights an urgent reality: "as many as half of the occupations available today are projected to transform significantly in the coming years, increasing demand for workers with technical and highly employable skills."
This transformation, driven by technological advancement, automation, and evolving business models, means that the skills landscape is shifting rapidly. What employers need today may differ substantially from what they'll need in five years, making real-time alignment data increasingly critical for educational planning.
1
Perfect Alignment (100%)
All degrees and credentials awarded match job market demand—every graduate has skills employers actively seek
2
Strong Alignment (85%)
Most graduates possess market-relevant skills, with minimal mismatch between education and employment
3
Moderate Alignment (50%)
Half of graduates may struggle to find work matching their training, creating challenges for both individuals and employers
4
Misalignment (0%)
Complete disconnect between graduate skills and employer needs—no graduates have skills demanded by the market
Impact on Graduates and Employers
Higher labor market alignment rates translate directly to better outcomes: graduates leave postsecondary education with skills and credentials that increase their probability of job market success, competitive salaries, and career advancement. They're more likely to secure employment quickly, earn wages that justify their educational investment, and build long-term career trajectories.
Conversely, declining alignment creates cascading challenges. Employers struggle to hire the talent they need to grow, innovate, and remain competitive. Graduates face difficulty finding work that matches their training, potentially leading to underemployment, student debt burdens without corresponding income, and the need for costly retraining. The state's overall economic competitiveness suffers when businesses cannot access the skilled workforce they require.
Data-Driven Program Development
Access to comprehensive labor market data empowers colleges and universities to develop programs strategically tailored to projected job opportunities rather than relying on historical patterns or assumptions. Institutions can evaluate existing programs against current and projected labor market conditions, making evidence-based decisions about program expansion, modification, or phase-out. This data-informed approach ensures that educational investments—both institutional resources and student tuition—are directed toward programs with strong employment outcomes.
How Is North Carolina Performing?
84%
Statewide Average
Overall alignment across all North Carolina regions
88%
Highest Region
Greensboro region leads the state
50%
Lowest Region
Pinehurst-Rockingham faces challenges
Significant Regional Variation
While North Carolina achieves strong overall performance, the alignment between locally awarded postsecondary degrees and job openings varies dramatically across the state's Sub-Prosperity Zones. This geographic disparity reveals important nuances that statewide averages can obscure.
The Greensboro region demonstrates exceptional performance at 88% alignment—not only the highest rate statewide but also exceeding our 2030 goal. This suggests strong coordination between local educational institutions and regional employers, effective workforce planning, and economic conditions that support diverse employment opportunities matching local educational outputs.
In contrast, the Pinehurst-Rockingham region faces significant challenges with only 50% alignment—meaning only half of postsecondary degrees and credentials awarded match available job openings. This substantial gap indicates either a mismatch between local educational programming and regional economic needs, limited local employment opportunities for graduates, or demographic factors affecting workforce participation.
Implications for Workforce Mobility
Most regions across North Carolina show labor market alignment rates below the state average, revealing that while aggregate state-level production of degrees and credentials aligns well with broad labor market needs, distribution within specific regions is less optimal. This geographic misalignment has practical implications: individuals graduating within certain regions may need to relocate elsewhere in the state or face longer commutes to find employment matching their skills and credentials.
From an employer perspective, businesses in regions with lower alignment may be unable to recruit recent graduates with needed skills locally, necessitating recruitment from other regions or out-of-state, increasing hiring costs and potentially slowing business growth.
Regional Labor Market Alignment Across North Carolina
Understanding Regional Differences
This visualization illustrates the geographic distribution of labor market alignment across North Carolina's Sub-Prosperity Zones, revealing substantial variation in how well local educational outputs match regional employment opportunities.
The data demonstrates that workforce development strategies cannot be one-size-fits-all. Regions with lower alignment may benefit from targeted interventions: enhanced career counseling to help students understand labor market realities, program adjustments at local institutions to better match regional needs, or economic development initiatives to attract employers seeking the skills local graduates possess.
Next Steps in Performance Measurement
To provide additional context for North Carolina's performance, myFutureNC is collaborating with the Labor and Economic Analysis Division at NC Commerce to develop comparison metrics with other states. This interstate benchmarking will help policymakers understand whether North Carolina's 84% alignment represents competitive performance nationally and identify best practices from high-performing states.
These comparative metrics will be particularly valuable for assessing whether regional variations in North Carolina are typical of other states or represent unique challenges requiring targeted policy responses.

Data Availability Note
Demographic segmentation data (by race, ethnicity, and gender) is not currently available for the labor market alignment indicator. Future reporting may include these breakdowns to identify potential equity gaps in alignment outcomes across different student populations.