A new national survey reveals that employers maintain robust confidence in higher education's ability to prepare students for the workforce, even as broader public trust in colleges and universities has declined to historic lows.
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The findings, released in a report titled "The Agility Imperative: How Employers View Preparation for an Uncertain Future," surveyed 1,030 executives and hiring managers across private, public and government sectors. It marks the ninth such survey AAC&U has conducted since 2006.
"At a time when overall public confidence in higher education has reached historic lows, it is notable—and heartening—that confidence is dramatically higher among those who evaluate graduates' readiness for today's evolving workforce," said AAC&U President Dr. Lynn Pasquerella.
The survey found strong alignment between liberal education outcomes and workplace needs. Employers indicated they value both workforce preparation and citizenship development equally, with 94 percent saying colleges should help students become informed citizens—the same percentage who said institutions should prepare a skilled workforce.
Employers demonstrated strong support for campus environments protecting open inquiry, with 89 percent agreeing all topics should be open for discussion on college campuses. More than 80 percent said they would view a degree more favorably if it came from an institution free from government restrictions on learning and known for respecting diverse perspectives.
The ability to engage constructively across disagreement emerged as a highly valued skill, with 96 percent of employers saying it is useful for graduates to develop this ability in college. Eighty percent expressed confidence that institutions are helping students build these skills.
Preparation for an AI-enabled workforce also ranked as a priority, with 90 percent of employers saying it is important for graduates to have developed AI-related skills in college. Eighty-one percent reported confidence that colleges are helping students build competencies aligned with current and emerging workplace applications of artificial intelligence.
Hands-on learning experiences significantly influence hiring decisions, the survey found. More than three-quarters of employers said they would be more likely to hire graduates who completed internships or apprenticeships (81 percent), held leadership roles (81 percent), engaged with community organizations (76 percent), worked with diverse populations (75 percent), or served as peer mentors (75 percent).
Younger employers—those under age 40—placed even higher value on certain experiences. They were significantly more likely than employers over 50 to favor candidates who completed projects focused on global issues, participated in global experiences, or worked with people from diverse backgrounds.
Mindsets and dispositions also ranked highly among employer priorities. More than 90 percent said personal attributes such as motivation, resilience, self-awareness and curiosity are either "very" or "somewhat important" for workplace success—comparable to ratings for skills like teamwork and communication.
Microcredentials, such as digital badges or certificates, provide a hiring advantage, with 81 percent of employers saying such credentials positively influence their decisions. Nearly half (47 percent) consider them "very valuable" when evaluating candidates.
Employers under 40 were significantly more likely than older employers to value microcredentials, with 55 percent calling them "very valuable" compared to 28 percent of those over 50. The tech industry showed particularly strong support, with 61 percent rating them as very valuable.
Electronic portfolios also garnered employer support. Sixty-two percent said it would be "very useful" for candidates to provide an ePortfolio demonstrating their accomplishments—a steady increase from 36 percent in 2015 when AAC&U first asked the question.
The survey revealed significant generational differences in how employers evaluate graduates. Employers under 40 consistently rated graduates as better prepared across all skills measured, with an average 12 percentage point gap compared to employers over 50. They also expressed stronger confidence in higher education overall and were more likely to view a degree as worth the investment.
Younger employers placed notably higher value on outcomes related to global awareness and cultural competence. They were significantly more likely than older employers to rate as "very important" the ability to appreciate cultural differences and situate actions in global contexts.
Dr. Ashley Finley, AAC&U vice president for research and author of the report, said the findings challenge the notion that educating for citizenship and professional preparation are incompatible goals.
"The findings in this report make the strongest case yet that educating students to be responsible citizens and educating them to be agile professionals is a false binary," Finley said. "Employers, especially those under the age of forty, strongly endorse a college education that does both."
While employers expressed general satisfaction with graduate preparation, the survey revealed gaps between expectations and perceived readiness. On average, only 38 percent of employers said graduates are "very well prepared" across the 14 specific skills surveyed—even as more than 90 percent rated most of those skills as "very" or "somewhat important."
The largest gaps appeared in critical thinking, problem-solving and the ability to apply knowledge to real-world settings—areas where more than 60 percent of employers rated the skills as "very important," but fewer than 40 percent said graduates were "very well prepared."
Political affiliation influenced some perspectives. Employers who identified as Republicans reported the highest confidence levels in higher education at 75 percent, compared to 70 percent of Democrats and 56 percent of Independents. However, employers who identified as liberal were significantly more likely to strongly support open campus discussion and respect for diverse perspectives than those identifying as moderate or conservative.
The survey was conducted online from Aug. 11-24, 2025, among employers defined as full-time workers in manager-level positions or higher at organizations with at least 25 employees. The results have a margin of error of plus or minus 3 percentage points.
