How do young people get off to a flying start in the workforce? They get a degree.

At least, that’s the traditional recommendation. In recent years, however, the importance of a university degree has been called into question. In the coming years, we may even see young people forgo higher education altogether.

In a bid to become more inclusive and accessible, many companies are scrapping university degree requirements. Since 2021, the number of UK job listings that don’t require a degree has increased by 14%, according to LinkedIn data. Instead, these job listings place more importance on transferable skills and work experience.

Many graduates leave university saddled with tens of thousands of pounds of debt, yet only a few walk into a better position than their non-graduate peers—and this can often be due to nepotism rather than higher qualifications.

According to The Telegraph, computer science is the most lucrative degree in the UK, especially if gained at the University of Cambridge; graduates of such courses potentially earn around £100,000 per year. At the opposite end of the scale, Performing Arts graduates are likely to be the lowest earners, averaging around £23,000 annually. Furthermore, the gap between the earnings of graduates and non-graduates is closing. According to the Government’s Graduate Labour Market Statistics for 2023, working-age graduates now earn an average of £7,000 more than non-graduates each year, compared to £9,500 in 2015.

Previously, university increased social mobility for young people from deprived areas and working-class backgrounds. When they graduated, they were hired for roles that otherwise would have been out of their reach. But times change and university is not as accessible as it once was, and it’s no longer a shortcut to success if the outcome of a higher-paid job is no longer there. In 2012, university tuition fees tripled, meaning the average student leaves education with debt amounting to around £45,600, charged at 7.3% interest. Students who started university in September 2023 will pay back their loans over 40 years, rather than the 30 years for students from previous years.

One of the draws of university for many young people is that it offers life experience and independence whilst they gain their qualifications. However, this de-emphasis of university degrees may mean that many young people (and their parents) will seriously be considering whether ‘life experience’ is worth so much debt. This was the case for university students during the pandemic and subsequent lockdowns, who missed out on physical classes and lectures, who were forced to forgo all the social aspects of university, but who were still saddled with the same amount of debt.

Not every job will be impacted, of course. Certain industries require qualifications as a default; there is no way someone can ‘work their way up’ to being a brain surgeon unless they’ve studied, passed exams, and proved themselves before they’re let loose inside someone’s skull.
Jobs that don’t require university degrees tend to be office-based roles, where soft skills and experience are paramount for candidates if they hope to stand out. Graduates of Humanities, Marketing, and Business and Management courses will have a theoretical understanding of the role requirements, but they won’t have the same experience as someone who skipped university and who has worked full-time in such a role for multiple years.

This could be a positive shift. By removing degree requirements, many job opportunities could be more accessible for people from diverse backgrounds or lower socioeconomic classes who didn’t go to university. By pivoting to a skills-based approach for hiring, the job will go to the candidate perceived to be the most capable, rather than the one with the highest qualifications.

However, this move could potentially widen inequality. For example, young people born in small towns and rural areas will have fewer opportunities available to them if they don’t go to university, whereas people born into affluent families are likely to have better access to internships, networking, and the ability to undertake unpaid opportunities to gain experience regardless of any higher education.

If young people decide that university is not worth the amounting costs, higher education institutions will certainly be impacted. Most university funding comes from tuition fees and many institutions are already struggling. The OfS said that 40% of universities were expecting deficits, and the Education Secretary has warned them not to expect taxpayer handouts. It’s possible that young people will instead opt for apprenticeships or alternative education providers that offer a more hands-on approach, giving them the soft skills and experience they need. Young people will still go to university, but they will likely apply for courses with better prospects, such as computer science; therefore, certain degrees will die out.

For recruiters, this shift towards skills-based hiring presents both challenges and opportunities. Without the clear-cut qualification of a degree to rely on, recruiters will need to rethink their approach to candidate evaluation, placing a stronger emphasis on assessing soft skills, work experience, and potential. This means implementing new tools and techniques for talent identification, as well as exercising the fundamentals of recruitment website design to ensure that job listings clearly articulate the skills and experience required, rather than relying on educational prerequisites.

Ultimately, this could lead to a more diverse and inclusive workforce, but it also places added responsibility on recruiters to avoid bias and ensure fair assessment of candidates from all backgrounds.

The world of work is constantly changing and adapting. It’s currently being impacted by new technologies, an unstable economy, and evolving social values. There has been some form of tuition at the University of Oxford since 1096; this shift will not see universities gone for good. People will continue to study for degrees, and they will be necessary for many industries well into the future.
The evolution is that many young people in the coming years won’t see university as the default. They will likely research all their options. As a result, higher education may well find itself further down the popularity list against apprenticeships, T-Levels, and other forms of workplace learning.

Fast Recruitment Websites are specialists in recruitment website design. Contact us for a no-obligation review of your website and whether it meets what your clients and candidates are expecting in 2024. Call 01302 288591 for more information.