Skills Over Degrees: How Employers Are Rethinking Hiring in a Changing Job Market

For years, a university degree or a trade qualification was seen as the golden ticket to secure employment.

While those credentials still carry weight, the tide is shifting. Across Australia and the UK, employers are increasingly looking beyond formal qualifications and placing greater emphasis on practical skills, adaptability, and hands-on experience.

This change isn’t simply a passing trend—it’s a response to persistent skills shortages across critical sectors.

Persistent Shortages in Key Industries

Technicians, skilled trades, and professionals in health, engineering, and teaching remain in high demand. Despite government initiatives and investment in training pathways, employers continue to face shortages that threaten productivity and growth.

• Healthcare is under constant pressure, with ageing populations requiring more services and staff at every level.

• Engineering and construction face gaps that risk slowing down infrastructure projects and innovation.

• Education continues to grapple with teacher shortages, particularly in science, technology, and regional schools.

• Trades and technicians remain the backbone of both economies, yet apprenticeships are not keeping pace with demand.

These shortages highlight a growing disconnect between the qualifications people are gaining and the actual skills needed in the workplace.

Why Employers Value Skills Over Degrees

Employers are finding that while a degree can demonstrate theoretical knowledge, it doesn’t always guarantee that a candidate can apply those skills effectively in a fast-changing work environment. What’s more, many industries are being transformed by technology, meaning the ability to learn new tools and adapt quickly is now just as important as formal education.

Skills are in hot demand today.

As one recruiter recently put it: “We’re hiring for capability, not just a piece of paper.”

In short, a candidate with proven problem-solving ability, up-to-date technical knowledge, and relevant certifications often has an edge over one with a traditional qualification but no recent, practical skills.

Micro-Credentials and Short Courses: Filling the Gap

One solution gaining traction is the rise of micro-credentials—short, targeted courses that focus on specific skills. Unlike traditional degrees, these can be completed in weeks or months, allowing job seekers and employees to respond quickly to market demands.

Areas seeing particular growth include:'

• Artificial Intelligence and Data Science – as industries embrace automation, there’s soaring demand for workers who can manage, analyse, and interpret data.

• Sustainability and Green Skills – organisations are under increasing pressure to meet environmental standards and pursue net-zero targets.

• Digital Literacy and Cybersecurity – essential in almost every field, from small business to government.

These certifications don’t replace traditional education but complement it, offering a way for individuals to remain relevant and competitive in evolving job markets.

What This Means for Job Seekers

For those entering the workforce—or considering a career change—the message is clear: don’t rely solely on a degree. Employers want to see evidence of practical skills and continuous learning.

Investing in micro-credentials, industry certifications, and hands-on training can significantly boost employability, particularly in sectors grappling with shortages. For young people, trades and apprenticeships remain an excellent pathway.

For mid-career professionals, upskilling in areas like AI, sustainability, or digital transformation can open new opportunities.

The Road Ahead

The shift towards skills-based hiring doesn’t mean degrees or apprenticeships are obsolete. Rather, it reflects a broader change in how we value learning. The future of work will reward those who combine formal education with ongoing professional development.

Employers, educators, and policymakers must continue to work together to bridge the skills gap. But for individuals, the opportunity is clear: by taking charge of their own learning journeys, they can position themselves strongly in an increasingly competitive market.