Are degrees losing ground to skills? Here's how to stay afloat in a transforming job market

For generations, higher education has been synonymous with a “high-paying job,” a golden ticket to a well-fortuned career. But what if this key no longer guarantees success? The job market emphatically echoes a bold reality—degrees alone fail to hold the same power; it is skills that now dictate the employability ethos.

While impressive academic credentials retain their lustre, their dominance in hiring decisions is waning. A degree might get a foot in the door, but without relevant skills, it risks being little more than a decorative credential. Employers are shifting their priorities, no longer fascinated by institutional prestige but instead drawn to candidates who bring hands-on experience and adaptability to the table.

The professional world is no longer a waiting game for those who rely solely on credentials. As Charles Darwin famously stated, the species that are well-adapted to the environment will be able to thrive. Now, more than ever, this truth applies to the workforce—those who fail to adapt risk being left behind.

Skills over scrolls: The new hiring mantra

While the skills are overweighing degrees in various sectors, they are particularly visible in high-growth domains like technology, artificial intelligence (AI), and cybersecurity. With a shifting focus of the employers, the interview questions no longer focus on “Where did you study?” but rather “ What can you bring to the table?” Practical expertise is no longer a good-to-have skill but a must-have for employers.

Conducted between December 2024 and January 2025, the Indeed survey gathered insights from 6,126 employees and job seekers across Singapore, India, Japan, and Australia, with 2,507 respondents from India alone. Findings indicate that 60 per cent of workers foresee skills-based hiring becoming even more dominant by 2025, compelling professionals to upskill, earn certifications, and embrace lifelong learning to stay ahead.

The talent shortage paradox: A double-edged sword

Well, to say that degrees have lost their shine is not true. Despite the growing dependence on skills-first hiring, companies find themselves grappling with a paradox- while degrees may not be the ultimate yardstick, but are an indication of finding skilled candidates. The survey have unearthed that 42 percent of hiring managers wriggle to spot talent with necessary expertise. In response, businesses are tearing down traditional degree barriers, revamping job descriptions, and broadening hiring criteria to build a more diverse and capable workforce.

Why businesses are betting big on skills-first hiring

Companies that have adopted a skills-first hiring model are reaping substantial rewards:

• 38 per cent of employers say employees with transferable skills contribute effectively across multiple roles.
  
• 31 per cent report a marked improvement in candidate quality.
  
• 30 per cent cite broader business advantages, including heightened innovation and diversity.
  

For organisations yet to make the leap, the writing is on the wall—82 per cent plan to transition to skills-based hiring soon. This trend is rewriting workforce development strategies, ensuring businesses remain agile and future-ready in the face of digital transformation.

How to stay afloat in the current job market

In this tightening and volatile job market, it is becoming increasingly essential for candidates to adapt to the current scenario. It is essential for aspirants to transcend their limitations to acquire a degree from a Tier-1 college and acquire the relevant skillset. Employers are now seeking candidates who can bring the most sought-after skills to the table. Here is how job seekers can stay ahead of the curve:

• Master in-demand technical skills: Technical skills are always in demand. Fields like AI, cybersecurity, and data analytics are booming. Acquiring mastery in these fields through certifications and hands-on projects can profoundly enhance employability.
  

• Sharpen problem-solving abilities: Problem-solving skills are highly valued skills. Employers seek individuals who evaluate critically and tackle challenges efficiently. Engaging in real-world case studies and problem-solving exercises can build this competency.
  

• Adapt and innovate: Adaptability is the keyword. The job market is evolving at breakneck speed. Staying agile by continuously learning and adapting to new industry trends will set job seekers apart from the competition.
  

• Refine communication & collaboration skills: No matter how technically skilled a candidate is, the ability to articulate ideas effectively and work seamlessly with teams remains crucial for success.
  

The future belongs to the skilledThe message for professionals is spelled out in black and white: Degrees hold merit, and skills are ultimate game-changers. The secret to staying relevant lies in continuous learning , acquiring industry-relevant certifications, and cultivating adaptability. In a world where technology is disrupting every industry, those who can showcase their skills—not just their qualifications—will be the frontrunners in the job market’s next big revolution.