Indeed, one of the most popular job search websites, has reported a decrease in job postings with education requirements by employers. According to a report by Indeed Hiring Lab, as of January, more than half of U.S. job postings on Indeed did not come with any education requirements at all. This is an increase from the previous year, where 48 percent of job postings had no education requirements.
The report suggests that over the past five years, the share of job postings requiring formal education has fallen across nearly every schooling level. Job postings requiring a bachelor’s degree or above saw the sharpest decline, dropping by 2.6 percentage points. In addition, only 17.8 percent of U.S. jobs posted on Indeed required a four-year degree or higher, down from 20.4 percent in the past five years.
This shift in hiring practices is a clear sign for workers to invest in skills regardless of their education level. Cory Stahle, an economist at the Indeed Hiring Lab, emphasized the growing support for skills-first hiring approaches and advised workers to consider reskilling. Even college-educated workers may need to think about acquiring new skills to remain competitive in the job market.
The labor market remains tight, meaning there are more job vacancies than unemployed workers available to fill them. This could prompt employers to reflect on their hiring strategies and consider candidates who can demonstrate the required skills without necessarily having a degree. Implementing skills-first hiring practices can help employers attract high-quality candidates and compete in sectors facing labor supply challenges.
Indeed’s analysis of 47 occupational sectors found that educational requirements have loosened in 41 sectors over the past five years. This trend is especially pronounced in software development, project management, and tech-adjacent information design and documentation. On the other hand, jobs in science, technology, engineering, and mathematics (STEM) still require higher levels of education, with over 65 percent of industrial engineering jobs explicitly preferring or requiring a bachelor’s degree or higher.
However, there have been some fluctuations in college degree requirements over the last five years. Interestingly, Indeed observed an increase in bachelor’s and graduate degree requirements between 2020 and 2022 in certain knowledge-work fields such as accounting, architecture, and physicians and surgeons.
The rise in educational requirements during a tightening labor market can be attributed to various factors. The COVID-19 pandemic may have led to quits and early retirements, causing employers to seek replacements for experienced and educated professionals who left their positions. However, the recent surge in public support for skills-first hiring and a shift in the types of workers being hired are likely the main drivers behind the decrease in education requirements.
LinkedIn, another popular business social networking website, has also observed a similar trend. An analysis published last August found that almost 30 percent of paid job posts on LinkedIn in 2022 did not include professional degree requirements, up from 21 percent in 2019. However, there is still a question of how many employers are translating this shift into actual hires. The percentage of degreeless hires made appears to be lower than the rate of degreeless jobs posted.
In conclusion, the job market is experiencing a decrease in education requirements by employers. As the labor market remains tight, employers are reevaluating their hiring strategies and considering candidates with the necessary skills rather than specific educational credentials. Although certain sectors still require higher levels of education, there is a growing trend towards skills-first hiring approaches. Workers are advised to invest in skills regardless of their education level to remain competitive in the changing job market.
