Northeast Indiana is not graduating enough students with postsecondary credentials to meet employers’ demand for talent in high-demand, high-wage (HDHW) occupations.

The regional economy of northeast Indiana is on the cusp of significant growth in HDHW jobs that require postsecondary education or training. However, a stark contrast exists between the burgeoning demand for skilled labor and the current educational attainment levels within the region. Declines in postsecondary enrollment and completion compound the problem. It is critical to improve postsecondary attainment to ensure economic resilience and foster growth.

• Over the next five years, the region’s demand for talent will grow by more than 5,600 HDHW jobs that require a postsecondary credential. A notable 61% of these positions require a bachelor's degree.

• Jobs with minimal education requirements (high school diploma or less) have the greatest risk of automation and are projected to decline over the next five years.

• Approximately 46% of working-age residents’ highest level of education is a high school diploma, equivalency, or less. Only 34% have completed some form of postsecondary education.

• Between 2017-2022, the number of certificate graduates at regional colleges and universities more than doubled and the region is close to meeting HDHW talent needs for certificate-level graduates.

• However, in the same timeframe, regional colleges and universities have seen a 15% decline in associate degree completions and a 17% decline in bachelor’s degree graduates.

• Northeast Indiana employers will face a gap of 6,500 to 8,000 bachelor's degree graduates by 2027.

The northeast Indiana supply gap analysis clearly shows increasing demand for individuals with postsecondary credentials to meet the needs of regional employers. Despite a rise in certificate completion, there is a growing demand for talent at all degree levels. It is imperative to assess and address all levels of postsecondary achievement to adapt to the continually evolving regional talent needs.

Cost remains the primary barrier to postsecondary enrollment for high school seniors and adult learners. Although significant financial aid is available, it is often hard to access and underutilized.

A myriad of studies and student feedback point to education costs as a primary barrier to both enrollment and completion. The average annual cost of attending a college or university in northeast Indiana in 2021 was $39,512 and $23,806 for private and public four-year institutions respectively, however the net price averages are significantly lower, averaging $20,515 and $11,707. Differences between sticker price and net price demonstrate the powerful impact of grants and scholarships on affordability.

Nearly all students in the region benefit from some form of federal, state, or institutional aid and significant aid is available through private financial aid providers and regional employers. Although financial aid plays a crucial role in alleviating postsecondary costs, the complexity of navigating financial aid options and underutilization of available resources underscore the need for enhanced support mechanisms. Additionally, many existing aid resources do not align with student needs or regional talent needs.

• 97% of northeast Indiana students receive federal, state, or institutional aid (including student loans).

• Approximately $70 million in federal and state aid is unclaimed by Hoosier students each year.

• Northeast Indiana’s private financial aid providers offer more than $6.6 million to nearly 2,200 students each year. However, many aid resources do not align with student needs or regional talent needs.

• Several student groups have less access to grants and scholarships – including middle-income students, those with average grades, and adult learners.

• Approximately 60-70% of northeast Indiana employers offer employer-sponsored tuition assistance programs. Yet, fewer than 5% of eligible employees utilize these education benefits.

• Most students use loans to cover full costs of attendance: 57% of Indiana students who earned a bachelor's degree in 2020, obtained student loans, graduating with an average debt of $28,521.

• While acceptable debt levels are relative to income and location, prospective students expressed extreme hesitancy to take on any student debt, highlighting an additional barrier to enrollment for many.

The intent to enroll is much higher than actual enrollment, and enrollment is much higher than completion, which highlights additional barriers for current and prospective students.

In Indiana, the aspiration for postsecondary education is widespread, yet substantial concerns exist over its affordability and perceived value. The disconnect between the desire for education and actual enrollment is stark. Once enrolled, about 20% of Hoosier students do not persist beyond the first year. These gaps signal a pressing need for interventions that address additional barriers to enrollment and completion. Addressing these challenges requires a multifaceted approach that embraces the diversity of student needs through supportive and flexible educational models.

• Despite 82% of Hoosiers holding a positive view towards higher education, 84% deem it too expensive, and 60% question the degree's value in the job market.

• Enrollment, persistence, and retention rates vary by age, race, and income level, indicating systemic barriers, biases, and cultural differences.

• Only 31% of first-time, full-time students complete a bachelor's degree in four years in northeast Indiana and 20% of working-age adults in the region have “some college” but no degree. Students leave school for various reasons, but once students stop out, they are unlikely to complete a formal credential. For those with some credits and no degree, most indicate interest returning for educational pathways other than traditional, four-year degrees.

• More high school seniors are graduating with a diploma and “some college” in the form of industry-recognized certificates and dual credits and are being encouraged to explore various postsecondary options, not just traditional four-year degree programs. A notable 59.7% of 2022 high school graduates passed at least one dual credit class. However, students report that college credits earned in high school can be difficult to strategically utilize.

• Adult learners face unique challenges to balance learning, earning, and caregiving, but with most postsecondary education resources designed for recent high school graduates, adult learners often lack individualized guidance and support to meet their needs.

Stop the debate between college and the trades and reframe postsecondary education as lifelong career development, inclusive of all educational pathways.

Postsecondary education is not a binary choice between “college” and “trades.” The data proves (and most stakeholders agree) that the HDHW careers of the future require some form of education or training beyond a high school diploma. Presenting students with an “either or” decision between college or trades establishes misleading options. College is not limited to a four-year degree on a campus, and the trades require training and education. Postsecondary education includes certifications, certificates, undergraduate and graduate degrees, and more. There are choices and pathways that fit any student and provide opportunities for all.

• This research indicates that establishing clearer links between academic accomplishments and tangible career outcomes will help address negative perceptions about the value of postsecondary education among a population that is increasingly hesitant to incur debt.

• Our region needs to cultivate a variety of pathways to help students earn certificates, certifications, and degrees. These credentials can intersect and stack over a lifetime of learning and career development. Educational settings are as varied as credential opportunities. Postsecondary education can be delivered in multiple settings – on campus, online, in high school, at work, in career and technical education centers, and beyond. Providing multiple pathways enables learners to choose the options that best fit their goals and circumstances, making postsecondary education more accessible to all.

• Education can occur at any time and multiple times throughout a career. High school students are earning dual credits, certifications, and even associate degrees before graduation. As the pace of technological change accelerates, the need to continuously learn new skills long after the first two or four years following high school graduation will result in a growing body of adult learners.

The APETS is designed to serve as a catalyst for regional action to improve postsecondary attainment and meet the current and future talent needs of regional employers. Forming a Coalition for Advancing Postsecondary Education and Training (CAPET) is the next phase of this initiative. The coalition will include representatives from workforce development, K-12 schools, higher education institutions, economic and community development organizations, employers, industry associations, social services, and community- and faith-based organizations. The CAPET will consider the research and opportunities presented in this report and formalize a strategy for regional action.

In focus groups for this study, students of all ages report challenges finding resources to support their postsecondary educational goals.  To address this need, we are developing an “asset map” of resources in northeast Indiana that support students’ postsecondary educational goals.  The linked database provides a starting point and an opportunity to submit additional resources. 

In addition, Questa Education Foundation hosts a Scholarship Search Tool to help students of all ages access local and state financial aid opportunities.