Content sponsored by Ivy Tech Community College

Indiana’s economy is at a critical juncture, facing a growing talent shortage across key industries due to both widening skills gaps and a shrinking labor force. Over the next decade, hundreds of thousands of Hoosiers will need to be upskilled or reskilled to meet employer demands and sustain the state’s economic momentum. Molly Dodge, Senior Vice President of Workforce and Careers at Ivy Tech Community College, recently spoke about Indiana’s workforce needs and the pivotal role Ivy Tech plays in addressing them.

What is the current state of Indiana’s workforce, and why is upskilling and reskilling becoming increasingly important?

Molly Dodge: Indiana is facing a serious workforce challenge. Labor force participation is down, and there’s a critical shortage of skilled talent across the state — especially among small- and mid-sized businesses. Additionally, the state’s working-age population is shrinking, which only makes the problem even more challenging. To stay competitive, Indiana needs to shift its focus from recruiting businesses to attracting and developing talent.

How does the state’s demographic trend impact the workforce and economic growth?

Molly Dodge: Indiana is navigating a “demographic cliff,” with a shrinking working-age population driven by lower birth rates, higher death rates, and limited population growth from migration. Without strategic interventions, 67 of the state’s 92 counties are projected to see population declines by 2030.

How many workers need to be upskilled or reskilled to meet Indiana’s evolving economic demands?

Molly Dodge: By 2035, Indiana will need to equip more than 82,000 working Hoosiers each year with industry-recognized skills and training to meet labor market needs and fuel the state’s economic growth.

Which industry sectors are most affected by the skills gap in Indiana?

Molly Dodge: The research points to a strong need for non-degree credentials in some of Indiana’s most important industries: advanced manufacturing, business and logistics, healthcare, and technology. In these fields, nearly 70% of job openings will require more than a high school diploma, but this doesn’t always mean a 4-year degree. Instead, it can involve additional skills training after high school.

What are non-degree credentials, and why are they important in closing Indiana’s workforce gap?

Molly Dodge: Non-degree credentials can include certificates, licenses, and apprenticeships. These short-term programs teach specific, in-demand skills without the time or cost of a traditional college degree. Most of these programs can be completed in just a few weeks or months, making them a faster, more flexible way to earn credentials.

How is Ivy Tech addressing these workforce challenges?

Molly Dodge: Ivy Tech is Indiana’s workforce engine, and we are uniquely positioned to meet the state’s challenges. Each year, over 25,000 students from all corners of Indiana enroll in our skills training and workforce-related programs. Our strategic partnerships and flexible training solutions help our community, including employers and businesses, thrive.

What role do employers play in closing the skills gap?

Molly Dodge: A paradigm shift is coming. Indiana’s employers will need to take a more active role in developing skilled talent. Waiting for job-ready candidates is giving way to a new approach, where businesses become true partners in shaping the workforce. By working directly with schools and training providers, employers can help design programs that build the exact skills they need, whether those are entry-level positions or leadership roles.

What are the recommendations for a collective state effort to meet future workforce demands?

Molly Dodge: To meet Indiana’s growing need for upskilling and reskilling through non-degree credentials, Ivy Tech is focused on expanding and improving how we deliver training to our communities. But we can’t do it alone. It will take a coordinated, statewide push that brings together educators, employers, philanthropy, and state leaders.

What is the anticipated impact of non-degree credentials on individual earnings and the state’s economy?

Molly Dodge: Specialized training credentials have additional benefits. For example, the state’s Workforce Ready Grant has shown that workers who earned short-term credentials saw an average wage increase of $6,000 within a year.

In the end, how does all of this come together to shape Indiana’s long-term success?

Molly Dodge: Ultimately, the goal is to build a strong, competitive workforce that can drive Indiana’s economy for years to come. By investing in Hoosiers and expanding access to fast, flexible, high-quality training, Indiana can stay at the forefront of industry, innovation, and economic growth.

Ivy Tech’s strategic focus on upskilling and reskilling, alongside its established training programs and partnerships, is crucial to building a resilient workforce that supports Indiana’s economic future.