This study examines how university-industry linkages contribute to workforce needs in Ethiopian public universities. It adopts interpretive and pragmatic research paradigms. Using a mixed-methods design, the study collected quantitative data from 644 university instructors and qualitative, data through semi-structured interviews from government officials in the Ministry of Education, Ministry of Industry, Ministry of Innovation and Technology, manufacturing and construction industry experts, and conducted focus group discussions with prospective graduates. The study utilized Structural Equation Modeling (SEM), hypothesis testing, Kruskal–Wallis Test, Chi-Square Test, and Ordinal Logistic Regression, with thematic analysis for qualitative data. The results demonstrate that there are significant correlations between university-industry collaboration and graduate employability, and skills matching with industry needs. The results indicate that strong university-industry collaboration is linked to improved job placement rates and greater relevance of skills, indicating the necessity for curriculum reforms encompassing practical experiences and industry feedback. The paper concludes that strong collaboration between academia and industry is essential to align education programs with the evolving needs of the labor market recommendations for policymakers, industries, and universities include the need to accelerate investment in partnership activities, incorporate experiential learning experiences, and actively involve industry stakeholders in the development of curricula. © The Author(s) 2025.
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