Abstract
Soft skills have become essential in the innovation-driven and sustainability-focused labor market landscape. However, often there is a lack of awareness within academia, industry, and government related to the gap between the skills that are cultivated and the skills needed in the workplace. This study investigates the alignment between university students and human resource managers regarding the perceived importance, competence, and application of soft skills in Albania’s evolving innovation ecosystem. A mixed-methods approach was employed, combining survey data from 51 university students and 66 business representatives across key sectors with a focus group discussion involving company managers. Findings reveal strong agreement on the importance of communication and teamwork skills among the participants. However, there is a misalignment between businesses' needs for soft skills and what the market actually offers, especially related to problem-solving, initiative, and self-management skills. Results from students' answers reveal insufficient practical skills learning within academic programs. A lack of awareness exists between the link of soft skills and sustainability among students; however, companies see them as very important to drive sustainable practices. The study highlights the need for systemic collaboration between universities, industry, and policymakers to co-design curricula, expand internship opportunities, and integrate sustainability-focused training and applied learning pathways.