Despite confidence in Atlanta’s workforce, nearly two-thirds say labor shortages are constraining business growth
ATLANTA, Aug. 26, 2026 /PRNewswire/ — Atlanta’s economy continues to grow, but employers say finding enough qualified workers to keep pace is becoming a challenge. New research from Penn Foster finds that 71% of Atlanta employers are experiencing a shortage of qualified entry-level talent, while nearly two-thirds (64%) say labor shortages are constraining their ability to grow or take on new business.
The findings reveal a paradox in Atlanta’s booming labor market. Nearly nine in 10 employers (87%) believe the city’s workforce is keeping pace with its economic growth, and more than half (51%) consider Atlanta’s talent pool stronger than the U.S. labor market overall. Yet employers continue to struggle to find candidates with the experience, skills, and workplace readiness needed to fill open roles.
“Atlanta has built one of the country’s most dynamic economies, but sustaining that growth requires a talent pipeline that can grow alongside it,” said Su Li Rivera, Chief Growth Officer, Penn Foster. “Employers are telling us they need people who can step into jobs with relevant skills and the ability to contribute. At the same time, they are becoming increasingly open to new ways of identifying that talent, creating more opportunities for people to build successful careers without following a single, traditional path.”
The survey of 252 Atlanta-area HR professionals and employers found that hiring challenges extend beyond the availability of candidates. More than three-quarters (77%) say their hardest-to-fill positions remain open for at least a month, while 37% typically need two months or longer to fill those roles.
When asked why their hardest-to-fill positions remain open, employers most commonly pointed to candidates lacking relevant experience (38%), technical skills (37%), and an insufficient number of qualified applicants (35%).
Atlanta Employers Look Beyond the Four-Year Degree
As employers compete for talent, many are reconsidering the credentials they require. Four in 10 Atlanta employers (40%) say they require four-year degrees for fewer positions than they did two years ago, compared with just 12% that have increased degree requirements.
More than eight in 10 (81%) say they are open to hiring candidates without a four-year college degree if they can demonstrate the necessary skills through work experience, certifications, or assessments, including 47% who say they are “very open” to doing so.
That shift is also reflected in how employers evaluate applicants. Relevant work experience (28%) and demonstrated skills and competencies (24%) carry the most weight when evaluating candidates. Just 11% say educational credentials are the most important consideration.
“Employers are increasingly asking a more practical question: Can this person do the job?” said Molly Friedland, Chief Commercial Officer. “That creates meaningful opportunities for people who can demonstrate their capabilities through career training, certifications, work experience, and other skills-based pathways.”
Employers Say Workplace Readiness Remains a Challenge
Technical training alone, however, may not be enough to close Atlanta’s talent gap. When asked which skills are most lacking among today’s job candidates, employers most commonly cited reliability and work ethic (44%), followed by problem-solving (37%) and communication skills (29%). By comparison, 21% cited technical skills, while 19% pointed to digital literacy and 19% to industry-specific skills.
Employers are also divided on whether new workers are becoming better prepared. While 38% say new hires arrive more prepared for their roles than they did three years ago, 30% say they are less prepared and 33% see little change.
Similarly, while 75% of employers express at least some confidence that recent graduates have the skills employers need, only 35% are fairly or completely confident.
The findings point to a need for workforce preparation that combines career-specific training with the foundational skills necessary to succeed and advance on the job.
Employers Want a Stronger Connection Between Education and Work
Atlanta employers also see greater collaboration with education providers as part of the solution. Better alignment between training programs and employer needs was the most commonly selected strategy for improving organizations’ ability to hire qualified workers (26%), followed by expanding skills-based hiring practices (19%) and increasing access to career-focused education and training (15%).
Nearly eight in 10 Atlanta employers (79%) say they would be interested in partnering with education providers to train or upskill employees, including 43% of employers who are very interested.
The findings come as Penn Foster recently celebrated graduates from across the country at its annual in-person graduation ceremony in the Atlanta area. More than 1,200 graduates gathered at Gas South Arena in Duluth on August 8, representing learners who completed high school, college, and career training programs through flexible education pathways.
For Penn Foster, the graduates represent part of a growing pool of skilled and motivated workers entering or advancing in a labor market where employers are actively seeking talent and increasingly looking beyond traditional credentials.
“Atlanta employers see tremendous potential in this workforce, but the research also shows that education and employment need to become more closely connected,” said Molly Friedland, Chief Commercial Officer. “When educators understand what employers need and learners have accessible ways to build those skills, we can create stronger pathways into good jobs while helping businesses build the talent they need to grow.”
To find the full report, visit https://www.pennfostergroup.com/news/pfg-research-examines-atlanta-talent-pipeline.
About the Survey
The Penn Foster Atlanta Workforce Survey was conducted among 252 HR professionals and employers in the Atlanta market in July 2026. The survey examined employer perspectives on Atlanta’s workforce, hiring challenges, entry-level talent, skills gaps, degree requirements, skills-based hiring, and partnerships between employers and education providers.
About Penn Foster
Penn Foster is a leading provider of online, career-focused education for learners seeking flexible pathways to high school completion and careers in high-demand fields such as healthcare and veterinary care. A pioneer in accessible education for more than a century, Penn Foster has helped generations of learners build practical skills and earn credentials aligned with workforce needs. Founded in 1890, Penn Foster focuses on creating pathways to greater economic mobility through real-world, in-demand skills designed to support long-term success in a rapidly evolving job market. Learn more at pennfoster.edu.
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