New international research reveals growing mismatch between student demand and workforce need 

New international research reveals growing mismatch between student demand and workforce need

New international research suggests that the connection between student aspirations, employer needs, and workforce priorities are becoming increasingly strained in some of the largest and most important fields of higher educational study.

The latest University as a Connector report, produced by Nous Group and Studyportals, examines student demand, employer demand, and graduate pathways across Australia, Canada, the United Kingdom, and the United States. The findings point to widening gaps in key workforce pipelines and the rapid impact of AI on the skills graduates need.

The research finds that some of the most significant mismatches are occurring in fields that sit at the heart of national productivity and workforce capability, including engineering, nursing, and health sciences. Across multiple countries, employer demand in these fields continues to grow while student interest has remained flat or declined.

Nous Group Global Higher Education Lead Zac Ashkanasy said the findings showed that universities could not rely on current student demand alone to guide future course offerings and investment.

“Universities face difficult choices about where to grow, where to protect capacity, and where to reshape their programs,” Mr Ashkanasy said. “Those decisions need to be informed by where workforce demand is heading, not only by what prospective students want to study today.”

“The most concerning gaps are appearing in fields that are central to national capability.”

One of the report's most striking findings is that Australia is expected to need around 150,000 additional engineers over the next decade to deliver major energy, transport, and defence programs, but that student interest in engineering is declining in both Australia and Canada.

The research also highlights the scale of workforce demand in healthcare. In the United States alone, approximately 189,000 registered nurse positions are projected to open up every year over the next decade, while student interest in the field has remained comparatively stable.

Beyond traditional workforce challenges, the report finds that AI is reshaping demand for skills across virtually every discipline. While technical fields continue to lead in AI-related demand, some of the fastest growth is occurring in non-technical disciplines. In Australia, the share of job postings seeking AI skills has risen significantly in areas such as law, information management, marketing, and communications.

The report argues that universities can no longer think of AI as a standalone discipline. Instead, institutions will need to embed AI literacy, data capability, and distinctly human skills – such as judgement, creativity, and communication – throughout the curriculum.

The research also challenges universities to expand their understanding of what it means to be a connector. More than merely attracting students and aligning programs with labour market demand, the role of universities increasingly includes supporting graduates into employment and understanding how talent moves across global labour markets.

"The data gives universities a clearer picture of where student interest, university offer and employer needs are misaligned,” said Studyportals CEO and Co-Founder Edwin van Rest.

"Taking a holistic and data-driven approach can be a guaranteed path to become more aligned, which really is a win-win-win situation."