Gen Z, millennials question college value as skills lead hiring
ILLINOIS, UNITED STATES — A growing number of Gen Z and millennial graduates are questioning the value of their college degrees, and new evidence suggests they have a point.
According to Michael Bush, CEO of Great Place to Work, top employers are no longer prioritizing degrees in hiring decisions.
“They’re not even talking about degrees now. They’re talking about skills. What skills do you have and what skills are going to be needed in the future? Lot of activity there,” he told Fortune.
Great Place to Work, which surveys over 23,000 companies in 170 countries annually, has found that the overwhelming focus among top employers over the last five years has been on skills and skills development, rather than academic credentials.
“Almost everyone is realizing that they’re missing out on great talent by having a degree requirement,” Bush explained. “That snowball is just growing.”
AI and skills-based hiring redefine job market
This shift is being accelerated by the rise of artificial intelligence in recruitment. AI-driven tools are now matching candidates to jobs based on their abilities, not their educational background.
“When you want to start doing matching between complex problems and the people needed to solve them, a degree doesn’t help,” said Bush. “What helps is perseverance, passion, and the skills required to solve the problem. AI is already doing this using skills databases, not degree histories.”
Major corporations, including Google, Microsoft, IBM, Apple, and Deloitte, have already eliminated degree requirements for many roles. Instead, they are turning to practical skills assessments and psychometric tests to evaluate candidates’ potential and mindset. Executives from Amazon, Cisco, and Apple have also emphasized that success depends more on attitude and adaptability than on formal qualifications.
Gen Z and millennials question degree value
The skepticism is not limited to employers. A recent Indeed survey found that 51% of Gen Z graduates consider their degree a “waste of money,” compared to 41% of millennials and just 20% of baby boomers. Rising tuition costs, stagnant wage premiums, and degree saturation are all factors fueling this disillusionment among young professionals.
