When I was a kid, the statistics were pretty clear: if you wanted to get a good, professional job, you needed to go to college. A lot of companies had college degree requirements built into their hiring criteria. That reality made going on to college the default option for many young Americans, and no doubt also made at least some students more willing to take on student loan debt because the sheepskin was seen as the key to a good-paying job.
It looks like that underlying reality may be gradually changing. Recent news reports indicate that more and more companies are dropping the college degree requirement from their hiring criteria. Walmart, the largest private employer in the U.S., announced last year that it would not be mandating a college degree for certain corporate positions, and some companies in the tech industry have also moved away from considering only applicants with a college education for many positions.
Job posting statistics for what once would have been considered “college-level occupations” show that a decreasing percentage specify a four-year college degree as one of the criteria. The percentage of postings specifying a degree has fallen from 85 percent in 2010 to 78.5 percent in 2023. Of course, that is still a healthy percentage of college education requirements–but it is the potentially accelerating trend that is of interest.
Why are some companies moving away from looking only at college graduates? Those that have done so say that they are focusing on the specific skills possessed by the candidates, rather than viewing a four-year college degree as a kind of surrogate for those skills–or at least, for the ability to learn and acquire those skills. In addition, dropping the degree requirement is seen as a way to broaden the applicant pool and ease hiring shortages for some positions. Those in the hiring business say this trend is opening the door to internal applicants who may not have a degree but whose actual performance at the employer demonstrates that they have the skills to do the job.
This movement away from college degree requirements is something to keep an eye going forward–particularly if you are associated with a college or university. If more companies drop the degree criterion, how will it affect the pool of high school graduates considering whether to take on the debt needed to secure a college diploma? The “gap year” phenomenon shows that some students want to defer college in favor of getting immediate travel or life experiences; that attitude could be broadened to sampling the job market, seeing if it is possible to work up the ladder, and avoid the college expense altogether. If I were working in administration at a college or university, I would keep an anxious eye on company hiring practices, as well as my enrollment and applicant data, in connection with deciding how much to charge for tuition.