A recent report from PwC indicates a decline in employer demand for formal degrees, especially in fields impacted by AI.

The “2025 AI Jobs Barometer,” published last week, analyzed nearly a billion job advertisements and financial reports from companies across six continents.

The report shows that the skills required for AI-related roles, such as financial analysts, are changing 66% faster than those in less affected roles, like physical therapists. This rate has increased from 25% recorded last year.

PwC explains that AI is accelerating the obsolescence of skills and knowledge, making formal qualifications less relevant.

In AI-driven sectors, employers prioritize candidates’ current capabilities over their academic credentials. PwC’s global chief AI officer Joe Atkinson said that AI tools and large language models are transforming education and career development.

He highlighted the importance of practical AI skills and self-learning for maintaining competitiveness in the evolving job market.

While AI is changing hiring practices, Atkinson acknowledged that formal education still contributes to developing critical thinking and interpersonal skills.

He noted that these higher-order skills may become increasingly valuable in the future.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: CNBC

🧠 Food for thought

1️⃣ The credential shift accelerates a historical pattern of job market evolution

The decline in degree requirements marks the latest chapter in workplace evolution that has continuously redefined hiring practices over decades.

In the 1970s, employers expected handwritten resumes with personal details including race, marital status, and health conditions, practices now prohibited by EEOC regulations established in 1964 1.

By the 1990s, the rise of the internet transformed hiring with 1 in 5 companies recruiting online by 1997, creating the first major shift toward digital credentials 2.

Today’s skills-based hiring revolution represents an acceleration of this evolution, with 81% of companies now using skills-based hiring approaches and 90% reporting better outcomes when prioritizing skills over degrees 3.

This latest shift reflects a fundamental change in how employers evaluate talent, focusing on demonstrable abilities rather than educational pedigree, much as previous generations adapted from in-person applications to digital recruiting.

2️⃣ Technology historically creates more job opportunities than it eliminates

Despite recurring fears about technology eliminating jobs, historical data shows technology has consistently generated more employment than it destroyed, though the AI revolution presents unique challenges.

Since 1960, productivity and employment have grown together 79% of the time in the U.S., demonstrating that technological advances typically expand economic opportunity 4.

Historical examples show this pattern repeating across centuries, from the automobile revolution that eliminated horse-drawn carriage jobs but created millions of new positions 5.

While jobs like human computers, pin boys, and switchboard operators have disappeared due to automation 6, McKinsey’s analysis indicates that technological transitions typically create new roles in emerging sectors, particularly in healthcare and STEM fields 7.

The key difference today is the unprecedented pace of change—skills in AI-exposed occupations are evolving 66% faster than in less-exposed fields, demanding more rapid adaptation than previous technological revolutions.

3️⃣ Democratized knowledge creates both opportunity and adaptation pressure

AI tools are democratizing access to specialized knowledge, potentially opening doors for those without formal credentials while simultaneously raising performance expectations for all workers.

The Pew Research Center found that 54% of workers believe continuous training and skill development are essential for future job success, reflecting a growing recognition that static knowledge is insufficient 8.

The shifting focus to skills over credentials could benefit workers without formal degrees—employment in jobs requiring higher education increased by 68% between 1980-2015, while lower-education jobs grew only 31% 8.

This democratization brings a dual impact: 45% of workers report seeking additional training in the past year to remain competitive, while companies expect to drop degree requirements for key roles and instead focus on competency assessment 9.

……