Every year, Arizona watches billions of dollars slip through the cracks. The problem is a fundamental disconnect between postsecondary education and students’ transition into the workforce. Nationally, that gap costs the U.S. economy an estimated $1.1 trillion in GDP each year, according to Pearson’s Lost in Transition report.

Arizona shares in that loss. Research from Helios Education Foundation and Education Forward Arizona shows that increasing postsecondary attainment by just 20 percent could add $5 billion to our state’s economy.

So what’s the cost of inaction? When roles go unfilled, companies delay expansion, automate prematurely, or relocate. Talent shortages reduce state tax revenue, suppress wage growth, and slow innovation. Instead of reacting to shortages, Arizona can instead anticipate them with a world-class talent alignment system, starting with real-time student interest.

The student problem: Graduating without direction

Across Arizona, students complete Education and Career Action Plan requirements as compliance exercises rather than meaningful career exploration. Many graduates emerge with diplomas but lack an understanding of which careers offer strong prospects or match their interests. This confusion leads the student to make multiple major post-secondary education changes and miss opportunities for high-paying, high-skill careers they never knew existed.

Students remain unaware of educational opportunities within their own communities that align with their career interests. They’re making life-altering decisions without comprehensive information about the pathways available to them.

The employer problem: Talent pipeline disconnect

Employers in key industries cannot find skills-aligned talent despite job availability. Business leaders participate in workforce discussions without real-time insights into what students want to pursue. Companies struggle to communicate career opportunities to students before they make educational decisions.

Arizona’s homegrown talent pool shrinks as students born and raised here graduate without knowing about career opportunities in their own communities. These Arizonans miss out on jobs that remain unfilled, forcing employers to look elsewhere for workers who could have been developed locally.

The policymaker problem: Making decisions in the dark

Policymakers face the impossible task of making workforce development decisions without comprehensive data on student interests or employer needs. Economic development officials make recruitment promises without knowing if local talent pipelines can support growth.

Multiple organizations work in silos, lacking coordination and sometimes duplicating efforts while missing critical gaps. Rural communities face even worse talent shortages with limited access to career exploration resources and localized opportunities.

What students and educators need: Early access and clear pathways

The solution begins with recognizing that career clarity cannot wait until graduation day. Students need early exposure to high-paying, high-skill careers before making postsecondary decisions. They require earlier access to career technical education opportunities with a better understanding of career pathway connections. When students can see the bridge between their interests and real career possibilities, they make more informed decisions that benefit both themselves and the state’s economy.

As Arizona State Senator and Chairman Kevin Payne (LD 27) states, “Arizona students should graduate with a clear pathway to a good-paying job — whether that’s college, skilled trades, technical training, or careers like public safety, which remains one of the top in-demand career fields in our state. When we better align education with real workforce needs, we strengthen our economy, support our employers, and keep opportunity right here in Arizona.”

What policymakers need: Data-driven infrastructure

Effective policy requires accurate information. Policymakers need comprehensive data about student interests to align funding with actual workforce demand while divesting from programs with no demand or interest. They require real-time workforce data collection to inform policy decisions and systems that enable coordination between education, training, and employment sectors.

Targeted investment in career infrastructure generates measurable returns. Health care sector initiatives alone can support nearly 1,000 active jobs monthly, producing tens of millions in economic output and millions in annual tax revenues.

Investment that pays for itself

Arizona must support funding for career exploration infrastructure that connects rather than competes with existing programs. The state needs data collection that reveals where resources need to go to fill career pathway gaps. Policymakers should prioritize solutions that give every Arizona student access to career clarity and pathway information localized to their communities.

Arizona cannot afford to maintain fragmented workforce systems while losing billions in economic opportunity. The economic returns justify the investment, and Arizona’s future competitiveness depends on acting now.

Amber Smith is the CEO of Pipeline Connects.