The new hiring math: Degrees matter, but for 86% of US employers skills now carry more weight

For much of the past century, the route into stable work was predictable. Earn a degree, enter a profession and move upwards with experience. A new report from Western Governors University, shared with Fortune, suggests that this model is losing ground. It found that 86% of United States employers now see non-degree certificates as indicators of job readiness. The finding reflects a shift in which hiring decisions rest less on educational pedigree and more on demonstrable skills.

The report still shows that degrees retain value. 68% of employers view them as important. Yet degrees are no longer the single filter they once were. Employers are leaning on broader evidence. This includes certificates, work samples and documented experience. In many cases, candidates who hold a recognised certification and have relevant experience are more competitive than those who rely solely on a degree.

Sorting the signal in a crowded credential market

The report says that certifications do not hold equal weight across all sectors. They are influential in technology, construction and healthcare. They matter less in legal services, hospitality and marketing. This uneven demand creates uncertainty for workers who want to invest in upskilling but do not know which pathways offer real value.

One challenge is the volume of available credentials. The report states that millions exist across the labour market, but only a very small proportion are widely recognised. In technology, some credentials have clearer standing. Programmes aligned with the National Initiative for Cybersecurity Education and certifications offered by CompTIA are cited by the University as examples that employers trust.

The report also suggests that workers should begin with the job rather than the credential. This means identifying high-demand roles, mapping the skills those roles require and then selecting pathways that end with industry-recognised proof. Timeliness matters. Skills should match both current needs and longer-term career goals. Given the reach of technology across sectors, improving digital capability is presented as a broadly useful step.

The rising importance of experience

Beyond credentials, the report found that 78% of employers consider work experience equal to or more valuable than a degree. This position aligns with a wider movement toward skills-based hiring. It also reflects what leaders in several industries have said publicly.

At Palantir, for example, Chief Executive Officer Alex Karp has described the company’s internal culture as one in which educational background loses relevance once someone joins. During an earnings call, he said that after entry, employees are viewed through the lens of contribution rather than pedigree. He added that working at the firm functions as a form of credential in its own right. His comment that this can set a person’s career trajectory captures the confidence some employers place in workplace performance over formal qualifications.

This sentiment is appearing across industries. Michael Bush, CEO of Great Place to Work, told Fortune that leading employers are no longer focused on degrees. In his view, they are focused on skills and the ability to apply them.

A more varied path to employment

Taken together, these findings show a hiring environment in transition. Degrees still offer value, but their dominance is weakening. Employers are building decisions around a mix of evidence. Certificates, practical experience and specific technical skills sit alongside academic attainment. This creates more entry points for workers who choose alternative routes and more pressure on professionals to update their skills throughout their careers.

The report captures a labour market that is becoming more flexible and more demanding at the same time. For candidates, the task is to build a portfolio that shows what they know and how they can apply it. For employers, the challenge is to understand which indicators predict performance. The hiring ladder is not disappearing. Its rungs are rearranging.Ready to navigate global policies? Secure your overseas future. Get expert guidance now!