Rachel Wallen Oglesby ,
November 7, 2024
Eliminating Degree Requirements from Public Sector Job Requirements
Key Takeaways
60% of Americans over 25 do not have a college degree
In 1983, over two-thirds of jobs required a high school diploma or less. By 2021, that share had fallen to just one-third of jobs—and the number that required a bachelor’s degree doubled.
75% of new job postings require a bachelor’s degree—but only 40% of potential applicants have one.
American workers owed approximately $1.7 trillion in student loans at the beginning of the Biden-Harris Administration.
Hiring for skills is five times more predictive of job performance than hiring based on degrees.
Degree Inflation Hurts Workers and Employers
Degree inflation—the practice of adding educational requirements to jobs previously open to any applicants with the necessary skills—has delayed workers’ entrance into the workforce, hindered labor productivity, and saddled millions of Americans with unnecessary student loan debt. Shifting from degree-based hiring to skills-based hiring pushes back on degree inflation, better aligns with modern workforce needs and expands access to job opportunities for all Americans. Governors and state legislatures should ensure public sector jobs are open to all qualified applicants.
STATE POLICY SOLUTIONS
- Governors should issue an executive order (EO) based on the America First model EO that shifts state hiring practices toward skills-based hiring. The EO should:
- Instruct state agencies to review all job postings to determine whether specified degree requirements are necessary to perform the job.
- Prioritize developing guidance for all agencies to implement skills-based hiring.
- Instruct state agencies to work with local career and technical education (CTE) program officials to focus on recruiting recent graduates.
- State legislators should pass legislation codifying skills-based hiring practices and mandating that state agencies open job opportunities to workers without a degree."
- State legislators should amend their bidding processes for state contracts to prioritize businesses with apprenticeship programs and practice skills-based hiring.
- Policymakers at all levels should encourage partnerships between private companies, high school CTE programs, technical institutions, apprenticeship programs, and other avenues for skills training outside of four-year colleges.