Indianapolis-based education nonprofit Lumina is shedding light on what employers make of college degrees.

Lumina and Gallup polled more than 2,000 employers. The findings show employers value a college degree but think that those graduates might not be prepared for success in their organizations.

Almost 70 percent said graduates need “a great deal or moderate amount of additional training upon hiring to be successful.” A little more than half said colleges are graduating candidates with the skills they need.

“These results differ from students’ confidence in the relevancy of skills they are learning in college,” the report said. “In the 2026 Lumina Foundation-Gallup State of Higher Education study, 93 percent of current associate and bachelor’s degree students are confident their school is teaching them the skills they need to get the type of job they want.”

Some employers are moving away from hiring American workers, with about one-fourth reporting they must rely on foreign-born workers.

But the outlook toward higher education isn’t all negative.

“Nearly half of employers (48percent) agree that most jobs at their business require a college degree to be successful, including 23 percent who strongly agree,” the report said.

Plus, about three-fourths of employers say they prefer candidates with a college degree, even for roles in which it’s not required.

“For policymakers and education leaders, these results underscore both the
enduring importance of postsecondary attainment and the need to strengthen alignment between education pathways and workforce demands,” the report said.