The aimed to study was to determine the level of employability skills, specifically the academic, personel management, and teamwork skills, of business graduates in Iloilo as perceived by the academe and as observed and preferred by the industry. It also tried to ascertain if, in regard to those skills, significant differences existed in the following: perceptions of of the academe, industry, and preferences of industry.The independent variables considered to affect the responses of the academe were status, type, location, and management level of the respondent. The that would affect industry were industry classification, employment size, asset value, origin, and years of operation. The study further hyphothesized that insofar as the graduates` employability skills were concerned, no significant differences existed in the academe`s perceptions of the skills and their perceptions of industry preferences, in the observations and preferences of industry, in the academe`s perceptions and industry`s observations, and in the academe`s perceptions of industry preferences. The descriptive method of investigation was used, and quantitative and qualitative data were gathered for the study. Numerical data were collected through a questionnaire and a 5-point rating scale administered yo 54 respondents from the academe and 254 respondents from the industry. The desciptive statistics used in classifying and summarizing the numerical data from employability skills rating were the frequency count and the mean. The inferential statistics employed to the test the hypotheses were the t-test for independent samples, the one-way analysis of variance, the Mann-whitney U, and the Wilcoxon signed-rank test, with 0.05 level of significance, To validate the numerical findings, qualitative data were gathered through interviews with selected respondents, focus group discussions with academe and industry representatives, and a tri-sectoral workshop with participants from the academe, industry, and CHED. The results of the investigation revealed that academic institutions perceived the level of employability skills of business graduates in Iloilo, in terms of their personal management and teamwork skills, as very good. The graduates,however,had a lower level of academic skills, particularly in communication and thinking. The academic institutions' perception of industry preference for business graduates with very good employability skills contrasted with industry's observation that graduates had lower level of skills in academics and personal management. Industry, especially big business enterprises and those outside Iloilo, preferred higher level skills than what they observed business graduates to possess.Academic institutions perceived that their graduates were not equipped with skill necessary for employment to the level of quality that industry desired. All these findings were confirmed qualitatively. Based on the results, recommendations were made to academic institutions to strengthen/ institutionalize linkages between academe and industry,establish the office of the business practicum coordinator, design an equivalency program based on competencies rather than general knowledge, encourage industry immersion for teachers, revitalize the role of the alumni, and formulate/ adopt an academe-industry development framework that not only gives a comprehensive grasp of the academe-industry relationship but also guides in reducing the chasm between the two sectors.