A new report from the Beacon Center of Tennessee warned that the state’s K-12 education system is failing to prepare many students for today’s workforce, despite record-high graduation rates and significant investments in Career and Technical Education (CTE).
The report stressed that while job opportunities in the Volunteer State are increasing, the state’s education system has not kept pace with the skills required for such roles.
Titled “Enrollment and Employment: Is Tennessee Preparing K-12 Students for Today’s Economy?,” the report cites data showing how a majority of Tennessee graduates feel traditional high school failed to prepare them for a job while Tennessee business leaders feel there are not enough locally trained workers for their employment needs.
These findings, the report noted, come as Tennessee experiences rapid growth in high-tech industries – with companies such as Oracle, Amazon, Google, and xAI expanding operations in the state – accompanied by continued shortages in skilled trades.
“Despite increasing job opportunities, in industries like tech and the trades, a skills gap exists…Tennessee needs to set its future on a clear path and meet the needs of the modern workforce,” the report said.
The Beacon Center highlighted CTE as one of the state’s most successful tools for addressing the gap, noting that students who complete a CTE concentration graduate at significantly higher rates than the statewide average.
The report, released on Monday, noted enrollment at the Tennessee College of Applied Technology has increased by nearly 70 percent over the past five years, signaling strong demand for applied, workforce-focused education.
To this, the report said, “Having high school graduation requirements that place college or university as the ultimate goal may not be the most beneficial thing for students or the state’s economy.”
“With increasing shortages in skilled labor and an evolving job market thanks to tech companies moving to the state, Tennessee students may benefit from designated pathways that offer clear but differing avenues to where they see their future career,” the report added.
As a potential model for reform, the Beacon Center pointed to Indiana, which recently adopted new high school diploma requirements offering multiple pathways aligned with college enrollment, workforce readiness, or military service.
In Indiana, students who complete certain pathways are automatically accepted into the state’s public colleges, while others receive structured support for entering the workforce or enlisting in the military.
“Recognizing that not everyone goes to college, Indiana has set students up to choose their potential future while still in high school. Instead of requiring every public school student to meet the same standards that have historically focused on pursuing higher education, students now can take a personalized approach to education and focus on their interests, prepared and confident for their next step after graduation,” the report explained.
Based on its findings, the report offered three main policy recommendations.
First, it called on Tennessee to study Indiana’s system and create multiple high school diploma pathways that more clearly prepare students for their chosen next step after graduation.
It also recommended aligning high school graduation requirements with admission standards at state colleges and universities, including automatic acceptance for students who meet designated criteria.
Further, it urged state leaders to reduce bureaucratic barriers and incentivize deeper partnerships between K-12 schools and local industries, expanding work-based learning and hands-on experience before graduation.
The Beacon Center concluded that while Tennessee has made meaningful progress – particularly through CTE investments – more systemic changes are needed to close the gap between education and employment.
“[F]urther increasing awareness and participation in CTE programs can give students a pathway to a high-paying and in-demand job, and Tennessee has more important work to do in this area,” the report said.
Without reform, the report warned, the state risks leaving students unprepared and employers understaffed.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
