by Kamran Akhtar Siddiqui
According to Organization for Economic Co-operation and Development (OECD), students with university degrees typically have an employment rate of 86%, while those with upper secondary or post-secondary non-tertiary education typically have an employment rate of 77%. Although it is true that a university degree adds value to an individuals’ credentials, the new workplace demands skills among individuals rather than mere degrees.
One of the reasons for preference of skills in the new workplace is the emergence of gig economy. A gig economy is a model which works on a flexible, temporary, or freelance work facilitated through technological platforms. Because of the gig economy individuals can earn by selling their skills through freelance platforms; they do not require a degree at all. Given the changing nature of economy, change is coming to the corporate world as well. For instance, a recent report by American Student Assistance and Jobs for the Future stated that 81% of employers agreed that ‘organizations should hire based on skills rather than degrees.’ Although this may not be applicable to a few professions like medicine, engineering and law because of licensing, others professions like financial services and IT might prefer skills to a degree.
There is also enough evidence that having a degree or a relevant degree cannot guarantee economic success in today’s changing work world. In the twenty-first century, people with unique skills and creativity can earn millions or even billions. Examples include Mark Zuckerberg, Jan Koum, and Evan Williams. In a few cases, even the relevance of degrees may not matter. For instance, former YouTube CEO, Susan Wojcicki, studied history and literature at Harvard. Flickr co-founder and Slack CEO, Stewart Butterfield, earned a Master of Philosophy from the University of Cambridge. Co-founder of the Alibaba group, Jack Ma graduated with a bachelor’s degree in English. This does not mean that college or university education is useless or irrelevant; academic experiences are immensely valuable. As Susan Wojcicki said, “I value my humanities degree…that foundation really enabled me to do that job.” However, the point remains the same: having a university degree does not guarantee financial mobility in the present-day world.
Given the needs of the new workplace, universities across the world should teach students in-demand skills. According to the 2020 World Economic Forum report, the top skills employers anticipate being more in-demand in the years leading up to 2025 are problem-solving and critical thinking skills, as well as self-management skills like resilience, flexibility, stress tolerance, and active learning. If higher education institutions foster a deeper, more comprehensive learning among individuals, they may help their graduates reach their potential and contribute to the world in their own unique ways.