College Degrees May Not Be Worth It: Employers Shifting Their Focus from Degrees to Skills

In a recent survey conducted by the Freedom Economy Index (FEI), employers have spoken loud and clear: the value of a college degree is diminishing, and there is a growing appreciation for blue-collar job-seekers who bring practical skills and real-world experience to the table.

This sentiment, shared by a substantial number of small businesses, reflects a significant shift in the perception of higher education’s role in preparing the workforce for today’s demands.

The FEI survey, a collaborative effort between job recruiting service RedBalloon and PublicSquare, gathered opinions from 70,000 small businesses. The results, based on responses from 905 participants, revealed a resounding lack of confidence in higher education institutions.

When asked about the “return on investment” of higher education, a staggering 67% of employers responded with a resounding “strongly no.” They expressed doubt that colleges were producing graduates with the relevant skills needed in today’s business landscape.

Ken Rusk, former construction worker and author of “Blue Collar Cash,” emphasized the changing landscape of higher education. He noted that colleges were once seen as institutions that enhanced the skills of effective individuals. However, they now seem to confer degrees upon individuals who lack essential life skills.

Rusk’s viewpoint on this matter was clear: “Colleges used to be a place where you would get a degree, and that would only enhance an effective human being, an already effective human being. Now we’re seeing colleges attach these degrees to people that literally can’t come out and do some of the life skills that we need.”

Some survey respondents echoed this sentiment. One employer lamented, “The talent shortage will just get worse because high schools and colleges produce no talent.”

Another called for skills to be taught in high school, while a third bluntly stated, “Absolutely not,” referring to advanced education as a “waste” from the perspective of a former college graduate.

Do you think a universities have lost their way in preparing young people for the workforce?

The survey also probed employers about their willingness to hire job-seekers with four-year degrees. Astonishingly, only 10% of respondents believed that a college degree would make a candidate more desirable.

In contrast, 41.5% stated that a degree made “no difference” in their hiring decisions, while over 40% indicated that a college degree would make them less inclined to hire an applicant.

“They’ve [graduates] kind of been hoodwinked a little bit to think that the degree is the thing that’s going to carry the day completely,” Rusk said.

“You have to remember that it’s something that you’re supposed to use to enhance the skills that you already have, and that’s what we’re seeing now,” he continued. “They’re relying way too much on that piece of paper or that degree, rather than getting some of the experiences that they need [and] that these companies really want.”

Rusk emphasized the financial advantage of pursuing trade certificates over traditional college degrees, citing the lower cost, shorter duration, and the ability to earn money while learning. In today’s labor market, where supply and demand favor trades, these practical skills are increasingly valued by employers.

He urged individuals to consider their career choices wisely: “You can get a degree, or you can get a certificate in a lot of these trades for a tenth or a fifth of what you’re paying for college. Not only that, but you’re doing it in half the time, and you’re earning money while you’re learning versus paying to learn and then hoping you get a job that matches up with that debt.”

Several major companies have moved away from college degree requirements, including IBM, Accenture, Google, Bank of America and Walmart helping to make the choice not to go to a university for an over $100,000 education much more appealing.

It really is time for higher education to rethink what they are doing and what they are charging to do it. They just many find their elitist ideals won’t pay the bills when a huge number of people just stop going because it is not advantageous to get jobs.

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