The report, based on feedback from over 350 managers at small and large companies, shows that doubts are not limited to employers. Only 24% of Gen Z individuals themselves believe their generation is ready for office jobs.
These figures highlight a growing crisis of confidence in higher education’s ability to prepare graduates for the labor market, especially amid rapid changes in the professional world.
The Declining Value of a College Degree
Experts note that the problem goes beyond AI’s impact on high-paying roles like programming or financial analysis; it also reflects the decreasing real-world value of a university degree.
This crisis is exacerbated by rising tuition costs and increasing student debt, combined with uncertain job prospects after graduation. In contrast, workers in field-based roles without degrees face fewer challenges and often find more stable opportunities in sectors like manufacturing, transportation, and healthcare, which rely heavily on practical skills and hands-on experience.
Skills-Based Hiring Outpaces Formal Qualifications
With more graduates entering the job market and fewer opportunities available, companies are shifting toward skills-based hiring instead of focusing solely on academic credentials.
Major companies such as Google, Microsoft, and EY are already offering prestigious roles without requiring a college degree, prioritizing practical experience and professional certifications instead.
The report notes that fewer than half of hiring managers expect workforce growth in 2026, with clear differences across industries. While sectors like healthcare, manufacturing, and transportation plan to increase hiring, technology, finance, and nonprofit sectors are reducing opportunities.
This shift puts Gen Z and the job market in direct confrontation, as new graduates compete with mid-career professionals for the same roles, amid reduced opportunities for internships and hands-on experience during college.
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