Oregon Produces 26,000 Fewer College Graduates a Year Than Employers Need, Report Finds

Oregon produces 26,000 fewer college graduates than State employers need, according to a report commissioned by Oregon House Bill 4124.

 

The Higher Education Coordinating Commission Conducted a Comprehensive Statewide Study

The 2026 legislative act directed the Higher Education Coordinating Commission (HECC) to conduct a comprehensive study and recommend a sustainable post-secondary education framework.

The study found that Oregon employers offer 78,000 posts that require higher education graduates. However, the state produces only 52,000 graduates annually.

Furthermore, Oregon lags 8 percentage points behind the 58% national average of high school graduates attending college within a year.

 

Oregon Has a Dismal Record at National Level

Its dismal record at national level carries through to public university spending, with Oregon ranked 46th nationwide.

Tidings Data Snapshot
Oregon Four Year College Funding Trails the U.S. Average
FY25 appropriation Oregon U.S.
Operating support per FTE $5,300 $9,600
Financial aid per FTE $1,200 $1,500
Total per FTE $6,500 $11,100
Total per headcount $4,200 $8,300

Source: HECC / SHEEO FY25

Dailytidings.com

Adding to the problem is that Portland State and several regional universities are enrolling a smaller number of students compared with 10 years ago.

The problem is further compounded by the fact that 55% of University of Oregon graduates, and 48% of Oregon State University graduates, leave the state once they have completed their degrees.

Tidings Data Snapshot
Share of Graduates Living Outside Oregon
University of Oregon55%
Oregon State University48%
OHSU43%
Eastern Oregon University43%
Southern Oregon University41%
Oregon Tech40%
Portland State University30%
Western Oregon University28%

Based on graduates from 2016 through 2021 and their location as of August 2026. Across Oregon public four year institutions, 43% were living outside the state.

Source: EY Parthenon / Lightcast

Dailytidings.com

 

Oregon’s Demand For Workers Continues Growing

Meanwhile, the Oregon Employment Department estimates that employment growth will reach 140,600 jobs by 2034. This reflects a modest growth rate of 6%, with only the federal government expected to reflect a declining demand of 3% (-1,000).

The biggest employment growth rates are expected to be in the private healthcare and social assistance sector, adding 40,400 jobs over the next decade.

The projected increase includes private-sector growth of 125,500 jobs (+7%), 7,700 jobs in government (+2%), and an additional 7,400 (+5%) in the self-employed bracket.

There were 2,196,000 jobs available in Oregon in 2024.

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