62% of NC employers struggle to hire—policy brief backs college workforce ties

For HR leaders grappling with North Carolina's 62% employer difficulty rate in finding qualified workers, the Martin Center's call to tie college funding to workforce outcomes isn't just an education policy—it's a direct talent strategy. By pushing for employer co-designed curricula and expanded apprenticeships, the brief offers a framework to close the skills gap that has bedeviled recruitment and retention.

The James G. Martin Center for Academic Renewal released a policy brief this week urging North Carolina to overhaul how it funds public colleges by tying appropriations directly to employment outcomes and requiring employer partnerships in curriculum design. The brief, authored by president Jenna A. Robinson, argues that labor shortages, accelerating technological change, and demographic shifts have created a persistent mismatch between the graduates the state's higher education system produces and the workforce demands of its growing economy. With 62% of North Carolina employers reporting difficulty finding qualified workers in 2024 — down from 81% in 2021 but still historically elevated — the pressure to realign postsecondary training with labor market needs has become acute.

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With 62% of North Carolina employers reporting difficulty finding qualified workers in 2024 — down from 81% in 2021 but still historically elevated — the pressure to realign postsecondary training with labor market needs has become acute.

The proposal represents a significant departure from the traditional enrollment-driven funding model for public universities and community colleges. Instead of rewarding institutions solely for student headcount, the Martin Center's framework would make sustained state support contingent on measurable employment results, including post-graduation earnings, placement rates in high-demand fields, and long-term career progression. This outcomes-based funding concept has gained traction in other states like Texas and Florida, but the North Carolina brief adds a crucial component: formalized partnerships where employers actively shape academic programs, identify skill requirements, and provide work-based learning opportunities.

Robinson's brief marshalls compelling data to support its case. A February 2024 analysis from the Burning Glass Institute and Strada Institute for the Future of Work found that students who complete at least one internship are 49% less likely to be underemployed after earning a degree. Meanwhile, North Carolina's own Department of Commerce reported in April that apprenticeship completers had a 13 percentage point higher employment rate and significantly higher wages a decade after finishing their programs, demonstrating the durable value of integrating work experience into education. The UNC System itself identifies critical shortages in business, computer science, education, engineering, and health professions — confirming that even within the existing structure, graduate production is misaligned with employer demand.

Already, North Carolina has demonstrated homegrown models that embody the brief's principles. The Carolina Battery Institute, launched in 2023 by Greensboro-based battery manufacturer Soelect Inc., operates what it claims is the nation's first hands-on training program for lithium-ion battery manufacturing. By directly connecting training with an emerging industry cluster, the institute has become a proof point for how employer-led education can fill specific talent gaps. The brief positions such initiatives not as outliers but as templates that should be scaled statewide through policy incentives.