Job postings are showing a trend of reduced formal educational requirements, offering hope for job seekers, particularly for the 1.5 million unemployed high school graduates aged 25 and older with no college education. A recent report from career-site Indeed analyzed US job postings since January 2019, revealing that 87% of the 47 occupational sectors studied had fewer postings requiring a bachelor's degree or higher compared to two years ago.
Employers are shifting towards skills-first hiring, emphasizing job seekers' abilities over formal education. In January, 52% of US job postings on Indeed did not specify an education requirement, marking a 4.0 percentage point increase since 2019. Postings mandating a bachelor's degree or higher decreased by 2.6 percentage points to 17.8%.
As the labor market tightens, companies like Delta Air Lines and IBM are adopting skills-based hiring practices to attract talent. Economists warn of potential long-term labor shortages in industries like nursing and natural resources extraction due to demographic shifts.
While some sectors may require certifications or licenses, many job postings now omit explicit educational requirements. For instance, around 61% of physician and surgeon postings in January did not specify an education level.
Despite the move towards skills-based hiring, some companies have not significantly increased hiring of non-college-educated individuals. A report by the Burning Glass Institute and Harvard Business School noted a modest decrease in job postings requiring a college degree since 2014.
Experts emphasize the importance of developing skills for job seekers, with adaptability identified as a top skill in demand. Planning to enhance skills is crucial for career advancement in an evolving job market.
Overall, job seekers are encouraged to focus on skills development and consider filtering job openings by education level to streamline the application process.
