Indiana colleges and universities train the workforce, but employers say many graduates still lack job-ready skills.

A new report from Lumina Foundation and Gallup shows employers still value degrees, but many struggle to find qualified workers. About half say most of their jobs require a degree, and over half say they can’t find candidates with the right skills.

That gap creates challenges for Indiana businesses trying to fill open positions. Courtney Brown, vice president of impact and planning with Lumina Foundation, pointed to the disconnect driving the problem.

“The biggest takeaway from this report,” said Brown, “is there’s a real gap between what the public believes about higher education and what students are actually experiencing.”

Employers also say new graduates need more preparation. About 69% say new hires require additional training, and 56% say hiring remains difficult.

Students, however, express confidence in their education. Brown said that confidence reflects what students experience in the classroom.

“When we talk to students,” said Brown, “nine out of ten of them say they’re learning career relevant skills, and they believe that the degree that they’re getting – the current students – will help them get a job.”

Supporters of higher education say it drives Indiana’s economy. Critics say schools must better align training with real-world jobs.

Support for this reporting was provided by Lumina Foundation.