Institutions of higher education are looked to by society as the training grounds and gatekeepers for college-trained workers. However, despite a long history of being viewed by many as unresponsive to labor force needs, the academy has not found ways of effectively meeting these demands, nor articulating why it is that they have difficulty doing so. This paper discusses how institutional researchers can help explain to campus administrators and others the role that institutions play in training individuals for the workplace, and why they cannot always quickly respond to and solve shortages of college-trained workers. The first section outlines what economic theory and research has to say regarding labor markets, how labor market shortages arise, and how students make decisions about which major to pursue. The last section describes problems institutional researchers face when using their skills with data to identify solutions to this problem. Using data from the state of New Hampshire, it will be shown that the data available to institutional decision-makers can be out of date, inaccurate, and not particularly useful for designing policies that would enable an institution to respond to the labor needs of the economy.