Degree or not degree? Why alternative paths into employment are on the rise

The past few years have seen huge changes to the world of work, with many aspects of hiring only returning to pre-pandemic patterns in recent months and others appearing to be changed for good, such as the rise in the proportion of hybrid roles available.

The most recent data from the Office for National Statistics (ONS) shows that the labour market has cooled somewhat, with vacancies declining across sectors in the June to August period. LinkedIn data also points to a more competitive environment, with people applying for more roles – the average number of applications per applicant in the UK was up 12.5% in July 2024 compared to the previous year.

For those looking for their first or next role, there are positives: while the labour market may be cooling, there are still more jobs available than pre-pandemic, according to the ONS.

Technical skills in demand

There is also an ongoing shift that's being seen in parts of the labour market towards skills-based hiring, with employers seeking to fill skills gaps and draw from a wider talent pool. According to research by Accenture, over a third of UK business leaders see technology talent shortages as a barrier to innovation, and nearly 90% of businesses are rethinking their skills strategy in the face of generative AI.

The shift to technical expertise is evident among the future workforce too: while more people applied to uni this year than last, the proportion of people applying to university to study technical degree subjects rose this year, with a 10% rise in people applying to engineering and 7% rise in applicants to maths degrees, according to UCAS .

The rise of different routes onto – and up – the career ladder

LinkedIn data shows that alternatives are on the rise as employers rethink how they hire: In the past three years, there has been an increase in job opportunities for people without degrees in the UK – the proportion of jobs advertised that don't require a degree has risen more than 14% since 2021 to April this year.

This echoes findings from employers' surveys, such as that from the Institute of Student Employers, which has seen a decade-long rise in the number of companies who say they hire with "no minimum requirements" on qualifications. More than half of its members said they will move to skills-focused hiring and a third of employers expect to drop all qualification requirements in the next five years.

"Employers are recognising that academic qualifications alone are not a good indicator of workplace potential," says Rosalind Goates , head of advocacy and campaigns at the The Social Mobility Foundation (SMF). "From EY to PwC to Santander just last year, more and more leading firms are scrapping minimum degree requirements for their trainee and graduate schemes."

Goates highlights that students from lower socioeconomic backgrounds are less likely to go to top universities, and says hiring based on top results from such institutions is an "outdated" barrier to social mobility. Instead, the SMF encourages all employers to remove minimum grade requirements. "Doing so will help to recruit a more diverse workforce that better represents customers, leading to more informed decisions and higher performance," says Goates.

Structured learning takes various forms

Apprenticeships are a particularly large part of the non-degree picture, with around 750,000 people participating in apprenticeship programmes in 2022/23 according to the latest government data . Health and social care is one of the sectors with the highest number of apprentices, while SMEs in manufacturing and construction saw some of the biggest increases.

Similar trends can be seen in LinkedIn's data. The Economic Graph team looked at job ads with the keyword “apprenticeship” and found that in manufacturing, job postings for apprentices grew 68% between 2022 and 2024, while in construction there was a 78% increase. The wholesale industry saw the biggest increase among the sectors in LinkedIn's data, with a 115% rise in apprenticeship job ads between 2022 and 2023, with figures remaining stable into 2024 so far.

Other sectors that have seen a rise in recent years include utilities, which has already seen a 61% increase in apprentice job ads this year compared to last, and retail, where the ads are up 59% year over year.

In retail, pathways into the industry have "transformed significantly", says Marc Brammer , the careers service manager at the Fashion Retail Academy (FRA) in London. "The traditional linear route has largely been replaced by a greater emphasis on flexibility and agility. It’s now less about solely being trained for a specific role, and more about equipping oneself with a versatile skill set or toolkit that can be adapted to various positions."

Brammer highlights how practical experience is now increasingly expected, even among people doing degrees, with the FRA's own programme an "industry-integrated" qualification with placements and project work. "In retail, there are very few roles that explicitly require a degree," says Brammer. "However, possessing a degree can facilitate quicker career progression and increase opportunities, but to further enhance employability and demonstrate commitment to potential employers, it is crucial to undertake additional opportunities like relevant internships or volunteering."

How hiring will continue to evolve

Rapid changes in the workforce are something gen Z are likely used to, prompting a focus on fit rather than titles and linear career paths. The cost of degrees has also become a wider conversation, with some universities saying they will be unable to survive at current rates while students have raised concerns about the costs, particularly given the rise of skills-focused hiring across practical and office-based roles.

Degrees are no longer seen as a prerequisite, says Joan Moore , head of early talent at Accenture. "In the last 10 years, the proportion of Accenture’s early talent roles in the UK that do not require applicants to have a completed degree has grown from 0% to 20%, and we now offer more degree apprenticeships in technology and business consulting."

Broader workplace shifts, including more hybrid work and the rise of generative AI are also changing what skills people need – while knowledge and technical skills are needed, there are soft skills employers now expect to see. "There's an increased focus on self-motivation and self-driven work ethics," says Brammer. "With very few [retail] brands operating outside a hybrid model, newcomers to the industry are expected to possess the intrinsic drive to complete tasks and achieve goals independently."

Moore agrees that having a mix of skills will become increasingly valuable – and that hiring will have to adapt. "Looking ahead, we expect to see increasing demand for roles that blend technical skills, like programming, with skills like creativity. These roles may not fit into traditional job categories and will require us to continue evolving our recruitment strategies to attract the right talent."

Reported by Siobhan Morrin

Economic Graph research by Rosie Hood, PhD