- Skills are becoming the new currency in today’s job market
- See article: U.S. workers need clarity on microcredentials for upskilling
- See article: Workforce training, upskilling in demand among younger adults
- For more news on evolving degrees, visit eSN’s Teaching & Learning page
In my youth, a higher education degree was more than a certificate. It was a rite of passage, symbol of prestige, and a perceived guarantee of financial stability. As a young boy growing up in Asia in a family that would be classified as middle-class minority, a bachelor’s degree was my absolute minimum aspiration. Back then, my options were primarily limited to engineering, medicine, or accounting. After graduating high school, when I was accepted into an economics program in the UK, I felt like I had finally made it. I had to work part-time at several odd jobs, including driving a taxi, to pay the tuition fees, but it felt worthwhile just to get that coveted college degree!
Fast forward to the present, to a world where new online and hybrid learning alternatives and fast changing job roles are converging with a competitive labor market, and the creator economy. I think we are at a point where we can safely say we’re reaching a tipping point in how conventional college degrees are viewed. We stand at a crossroads where the traditional paths to success are being redefined.
As an entrepreneur for more than 25 years, I have witnessed first-hand the seismic shifts in industries and career paradigms. The age-old belief that a college degree is the sole gateway to success is now a notion ripe for re-evaluation. The modern workforce is increasingly valuing skills and experience over degrees. This is not just a trend but a significant shift in our collective mindset.
In this new world, many companies are prioritizing what you can do, rather than where you learned to do it. This is particularly evident in tech start-ups and creative fields, where a person’s portfolio is often more influential than their academic credentials. For example, companies such as Apple, IBM, and Tesla no longer require candidates to have a college degree to qualify for an interview. Even retail giant Walmart has eliminated the college degree requirement for hundreds of its corporate roles. A report published by the Burning Glass institute last year described the growing trend of companies cutting degrees as a requirement as ‘an essential step in reducing inequity in the American labor market.’
The rise of the skill economy
What is driving this change? One of the main factors is the rapid advancement of technology, which is creating new opportunities and challenges for businesses and workers alike. Technology is not only automating tasks and disrupting industries, but also enabling innovation and entrepreneurship. As a result, the demand for skills that are relevant, adaptable, and creative is growing exponentially.
According to the World Economic Forum, 50 percent of all employees will need reskilling by 2025, as adoption of technology increases. It is expected that around 85 million jobs may be displaced by a shift in the division of labor between humans and machines, while 97 million new roles may emerge that are more adapted to the new division of labor between humans, machines, and algorithms. These figures highlight the urgency and importance of acquiring and updating skills that can help us navigate the future of work.
The currency of skills and adaptability
In my travels and interactions across the globe, I have seen a consistent trend: Skills are becoming the new currency in today’s job market.
Countries like Singapore and Thailand have already embraced this new currency of skills through initiatives like the Workforce Skills Qualification (WSQ) and Vocational Education and Training (VET) programs. Similarly, the Philippines’ Technical Education and Skills Development Authority (TESDA) empowers individuals with relevant skills through its Online Program (TOP).
In the US, an Industry-Led Skills Development Program was launched by USAID aimed at reducing unemployment and supporting sustainable economic growth by building a pipeline between skills training and high-value employment opportunities.
All these initiatives underscore the importance of practical, applicable skills across various sectors. The concept of lifelong learning, which I have always advocated, is now more relevant than ever. It is not just about acquiring knowledge but about continuously adapting to new challenges and environments. None of this, however, is a diminishment of education but an evolution of what education entails.
The limitations of the university degree system
It is clear that the traditional 4-year degree system has inherent limitations and inefficiencies. The degree system, as we know it, is based on a linear and rigid model of education that follows a one-size-fits-all approach. It assumes that everyone has the same learning style, pace, and goals, and that the knowledge acquired in a specific field of study will remain relevant and applicable for a long time. It also fails to address the rising costs and debts associated with higher education, which put many students at a disadvantage and limit their options.
The reality is that everyone has different learning preferences, needs, and aspirations, and that the world is changing faster than ever. The skills and knowledge that are in demand today may become obsolete tomorrow. Several universities have realized this and are quickly adapting to stay relevant. They are revamping their systems to cater to the diversity and dynamism of learners and the labor market.
To remain relevant, universities must evolve. The more progressive ones are already moving towards experiential learning, which develops skills and experiences that match industry needs. This means adopting practical, hands-on methods that equip students for the challenges of the modern job market.
Importantly, there is an emerging recognition that degree programs are not limited by time but can be ongoing modules throughout an individual’s career, whether it takes 5 years or longer. A curriculum that can adapt and change keeps the education syllabus, institution, and both the teachers and students current and relevant. Even in universities, there is a need for “educational agility” to match the 21st century and maintain their roles.
Overcoming societal stigmas
In Asian countries, one of the biggest hurdles for people who don’t have a college degree is dealing with social prejudices. Sadly, there is still a widely held belief in many parts that equates a college degree with success and intelligence. This is a narrative we need to change. As a society, we must recognize that there are multiple paths to success and that each path is valid and worthy of respect.
In my own journey, I have learned that success is not a one-size-fits-all formula. It is defined by our values, our resilience, and our ability to adapt. We must encourage a more inclusive definition of success, one that values diverse career paths and the unique contributions of each individual.
A call to action
As we navigate this new world, it is crucial to strike a balance between our aspirations and the practical realities of the modern job market. While we advocate for broader definitions of success and varied paths to achievement, we must balance this with a recognition of the sectors where specialized education remains pivotal.
Even as we embrace the rise of the skill economy, we must also acknowledge the enduring value of specialized degrees in fields such as healthcare, STEM, and education. These degrees provide indispensable, focused knowledge and are often prerequisites for entering and excelling in these critical sectors. They offer the depth of expertise and the opportunity to engage deeply with one’s chosen field.
However, this is not to suggest a one-track path for all. The costs and benefits of a specialized degree must be carefully considered. For those drawn to these specialized fields of study, it is crucial to consult with career counselors and advisors to fully understand the commitment needed, and the potential it unlocks.
The future is inclusive of both skill-based qualifications and traditional degrees, with each individual’s passion and commitment guiding their educational and professional choices. With the inevitable advent of AI thrown into the mix, there is no avoiding the confluence.
I urge young people, educators, and policymakers alike to embrace this new paradigm. Let us redefine success to include a broader range of skills and experiences. Let us commit to lifelong learning, not just as a concept, but as a practical approach to personal and professional growth.
Let us move forward with an open mind, valuing all forms of learning and acknowledging that whether through experiential learning or specialized degrees, education remains a powerful tool for personal and societal advancement.
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