Degrees lose relevance as Gen Z prioritises skills and experience: Report

Formal college degrees are no longer the default gateway to employment for Gen Z, with young professionals increasingly prioritising skills, hands-on experience and flexibility over traditional academic credentials, according to The Gen Z Work Code Report 2026.

The report finds a clear shift in how Gen Z evaluates career readiness and opportunity. Unlike previous generations that viewed degrees as essential signals of employability, Gen Z respondents showed a stronger preference for demonstrable skills, real-world exposure and learning pathways that translate directly into jobs.

Skills over credentials

According to the report, Gen Z is more likely to value internships, project-based work, certifications and on-the-job learning than formal degrees alone. Many respondents said academic qualifications felt disconnected from workplace demands, particularly in fast-evolving fields such as technology, digital marketing and data roles.

The report notes that Gen Z does not reject education outright but questions its return on investment. Rising education costs, delayed job readiness and the availability of alternative learning platforms have weakened the degree’s status as a career filter.

Also read: Managers, not companies, are driving Gen Z attrition: Report

Changing employer signals

The findings align with a broader shift in hiring practices, where companies are increasingly relaxing degree requirements and emphasising skills-based assessments. The report highlights that Gen Z is highly responsive to these signals, adjusting career planning around employers that reward capability rather than credentials.

Respondents indicated greater trust in organisations that offer clear skill progression, apprenticeships, and internal mobility, regardless of formal education background. For many, flexibility and access to learning mattered more than institutional prestige.

Impact on India’s employability debate

The report’s findings have particular relevance for India, where degree inflation has long coexisted with employability gaps. Gen Z respondents expressed frustration with curricula that lag industry needs, reinforcing concerns that degrees alone do not guarantee job readiness.

By prioritising experience-driven learning and adaptable skill sets, Gen Z is effectively redefining employability benchmarks, the report notes. This shift places pressure on universities, policymakers and employers to rethink how talent is prepared, evaluated and hired.

Also read: As AI reshapes hiring, even Stanford degrees are no longer a guaranteed ticket to top tech jobs

Education as one pathway, not the only one

The Gen Z Work Code Report 2026 concludes that while degrees still hold value, they are increasingly viewed as one option among many rather than a mandatory step. For Gen Z, capability, relevance and opportunity now outweigh formal credentials in career decision-making.

As skills-based hiring gains ground, the long-standing link between degrees and career success appears to be weakening, reshaping both the labour market and the future role of higher education.