Louisville Employers Face Talent Retention, Skills Gap Challenges: New Report

A new report released today indicates Louisville-area employers are grappling with significant workforce challenges, particularly in retaining talent and finding candidates with necessary skills, potentially impacting the region’s economic growth.

Greater Louisville Inc. (GLI) surveyed over 60 employers across a 15-county region in the second quarter of 2025, representing industries from professional services and manufacturing to healthcare and nonprofits. The survey revealed that nearly 40% of employers cite talent retention and competitive wages as their biggest hurdles, even as over 40% anticipate expanding their teams in the coming year. Employers emphasized the need for stronger talent pipelines, from high school career exposure to improved coordination between higher education and employer needs.

Skills gaps are also a major concern, with employers prioritizing soft skills, project management, and digital literacy. Notably, more than 70% of companies are already utilizing artificial intelligence tools for tasks like marketing, data analysis, and customer service, signaling a shift in required skillsets. Many are actively seeking to broaden their recruitment efforts to include veterans, older workers, and immigrants, recognizing the value of diverse talent pools – a strategy supported by the U.S. Department of Labor.

These findings align with GLI’s Prosper 2030 strategy, which focuses on talent attraction, retention, and upskilling. GLI plans to use the survey insights to shape future workforce initiatives and advocacy efforts, and encourages employers to reach out for support in building their talent pipelines; more information can be found on the GLI website.