The State of Employability: How Healthcare, Technology and Manufacturing Are Redefining Talent
Despite the current labor market, where there are more jobless Americans than open positions, skilled trade employers continue to be challenged in finding talent to fill lingering skills gaps, an issue 80% of employers are facing.
Amid these challenges, white-collar companies have turned away from entry-level workers, but new data from the 2025 Cengage Group Employability Report finds that healthcare (65%), manufacturing (67%) and technology (68%) employers are taking the opposite approach by hiring for the same amount or more entry-level positions this year to bridge workforce shortages.
The report uncovers what employers in these rapidly growing industries are looking for from entry-level talent and how they are shifting hiring practices to attract and retain the next generation of skilled workers. Let’s take a closer look at what these industries are prioritizing in entry-level hiring.
Employers are sticking with degree requirements, but they are starting to rethink their approach
Only around one in four skilled trade employers report removing degree requirements from some positions in 2025 - nearly half of the 52% of healthcare, 42% of technology and 52% of manufacturing employers reporting this last year. At the same time, more leaders in each industry are reinstating and maintaining 4-year degree expectations than in 2024, with healthcare seeing the largest jump of about 19 percentage points.
However, the lasting desire for degrees may soon fade. Among employers that are struggling to find entry-level employees, 58% of healthcare, 66% of technology and 46% of manufacturing employers have considered eliminating degree requirements to find qualified talent. In fact, among those facing challenges, many think removing degree mandates would widen the talent pool and help fill open roles.
Employers need to fill the skills gap, and hiring practices are shifting to better align
In rethinking their approach to hiring practices, employers are shifting their focus this year to transferable skills (healthcare: 49%, technology: 57%, manufacturing: 60%) and filling specific skills gaps (healthcare: 51%, technology: 55%, manufacturing: 61%). When asked what the single most important factor when considering an entry-level candidate, demonstrating mastery of the skills needed for the job comes out on top for all industries, even above a college degree or experience (healthcare: 36%, technology: 50%, manufacturing: 40%).
And this year, the skilled trades have made generative AI and emerging tech skills a hiring priority (healthcare: 36%, technology: 53%, manufacturing: 40%) with over half of these organizations believing employees would benefit from this knowledge in the workplace. While the approach to talent in these fields is evolving from simple degree requirements to skilled-focused hiring, it is important to understand what is of consistent value to employers to achieve meaningful, long-term employment impact.
To fill open roles in the future, employers are willing to meet talent where they are
A majority of employers have seen an increase in the number of candidates with credentials, leading half or more to expand their talent search to include those with industry certifications (healthcare: 60%, technology: 49%, manufacturing: 56%). This ultimately widens the talent pool and increases opportunities for skilled workers that are qualified for open jobs, despite not having a degree.
Not only are employers willing to rethink job requirements, they are also investing more time and effort into connecting with talent through private networking sessions (healthcare: 12% increase YoY, technology: 10% increase YoY, manufacturing: 7% increase YoY) and internships / co-ops than in years prior (healthcare: 19% increase YoY, technology: 8% increase YoY, manufacturing: 21% increase YoY). Establishing these connections allows workers to have an in-depth understanding of the necessary skills to succeed in the workplace and tailor their learning experiences to meet those needs.
As the healthcare, technology and manufacturing industries continue to navigate challenges related to evolving skills shortages and a limited pool of qualified talent alongside shifting hiring priorities, it will be essential that both employers and job seekers are clear on the necessary skills and training required for success. Moving forward, employers will need to look beyond education alone and prioritize candidates with the right skills and experience.
Methodology
This report is based on online surveys conducted by the Cengage Group Market Strategy and Research Team, led by senior researcher Victoria Long. The survey was administered in June and July 2025 to 566 full-time hiring managers in the healthcare, technology, and manufacturing sectors across the United States. Of those respondents, 204 were healthcare hiring managers, 198 were technology hiring managers and 164 were manufacturing hiring managers.