WASHINGTON, D.C. — Six in 10 U.S. employers who make hiring decisions for their organizations say they have a great deal (26%) or quite a lot (34%) of confidence in higher education as an institution, and nearly half (48%) believe college degrees will become more important in the age of AI.
These findings are from Lumina Foundation and Gallup’s second annual study of employers, conducted via an opt-in online survey Aug. 5-18, 2026, with 2,500 U.S. employers who make hiring decisions for their organizations. Respondents span industries, regions and organization sizes, from businesses with fewer than 10 employees to those with 1,000 or more.
When asked about the potential impact of AI on the value of a college degree, nearly half of employers (48%) expect AI to make college degrees more important over the next five years, compared with 26% who expect degrees to become less important. This belief is commonly shared among the industries that typically need employees with a degree, such as information (59% of employers believe college degrees will become more important due to AI), financial activities (53%), trade and utilities (49%), and education and health services (49%).
Confidence Higher Among Employers for Larger Organizations
Confidence in higher education differs by organization size, with the smallest employers having the most distinctive attitudes. Employers with fewer than 10 employees are the least confident in higher education (44%), compared with 59% or more for all larger organizations. Confidence is highest among employers at organizations with 500 to 999 employees (70%).
Employers at smaller organizations are also less likely to require a college degree for the roles they fill. Confidence in higher education is lower among employers whose roles rarely require a degree, which may account for some of the difference by organization size.
By industry, confidence is highest among employers in the information (70%) and education and health services (70%) sectors and lowest in professional and business services (51%) and leisure and hospitality (52%). Even in the least confident sectors, however, a majority of employers express confidence in higher education.
Employers’ confidence in higher education is broadly similar by region. Majorities of hiring decision-makers in the Northeast (62%), South (61%), West (60%) and Midwest (55%) express a great deal or quite a lot of confidence.
Employers Prefer Degree Holders Regardless of Whether the Role Requires One
Employers’ confidence in higher education as an institution may be tied to their interest in hiring candidates with degrees. When asked about their hiring preference (regardless of whether the role requires a degree), 80% of employers say they would prefer a candidate who has a college degree, including 31% who “strongly prefer” one. Just 21% prefer that candidates do not have a degree.
The preference holds whether the credential in question is a bachelor’s degree (68% prefer a candidate with at least a bachelor’s) or an associate degree (71%).
As with confidence in higher education, the preference for degree holders is consistent across regions, but it varies considerably by organization size and industry. Employers at the smallest organizations (fewer than 10 employees) are the least likely to prefer degree holders, though a majority (62%) still do. This preference rises to 78% among organizations with 10 to 99 employees and to 84% or higher among those with 100 or more employees.
Preference for candidates with a degree exceeds 90% among employers in the information sector (91%) and tops 80% in financial activities (87%), professional and business services (85%), manufacturing (84%), and education and health services (83%). It is lowest, but still a majority, in leisure and hospitality (66%) and construction (67%).
Implications
For most U.S. employers, degrees and credentials beyond high school still hold value in their hiring decisions. Six in 10 hiring decision-makers express confidence in higher education as an institution, and eight in 10 prefer candidates who have a degree, even for roles where one is not required. Employers’ trust in how colleges and universities prepare graduates appears to factor directly into how they weigh credentials when filling positions.
The data arrive at a moment of uncertainty about higher education among the public more broadly: Just 38% of U.S. adults expressed a great deal or quite a lot of confidence in higher education in June of this year. Speculation is also widespread about how artificial intelligence will reshape the labor market and the credentials employers demand. Yet the employers who make those decisions do not, for now, appear to be turning away from the degree. Nearly half (48%) expect AI to make college degrees more important over the next five years, compared with 26% who expect them to become less important, and three in four (76%) say having a degree or credential will be as important as it is today, or more so, to getting a good job at their organization.
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Learn more about studies from Lumina Foundation and Gallup.
