New Collar Work: Why Skills Are the New Degrees
Once upon a time, your career trajectory was largely defined by one question: What degree do you have?
But the world of work is changing — fast. Today, some of the most in-demand jobs don’t necessarily require a traditional four-year degree. They require skills, adaptability, and a commitment to lifelong learning. Welcome to the age of new collar work.
More than 70% of employers have already dropped degree requirements for certain roles to expand their talent pool (Harvard Business Review, 2023).
That’s a big deal — and a clear sign that skills-first hiring is more than just a buzzword.
What Does “New Collar” Mean?
The term “new collar” was popularized by IBM’s former CEO, Ginni Rometty, to describe jobs that sit between blue collar and white collar. They’re roles that demand technical and soft skills — but not necessarily a conventional university education.
Think about:
- Cybersecurity analysts
- Cloud support technicians
- Digital marketing specialists
- Data center operators
- Robotics technicians
These are good-paying, future-proof jobs that rely on certifications, bootcamps, apprenticeships, and on-the-job training — not just diplomas. In fact, only 27% of roles in fast-growing tech areas require a traditional degree (ManpowerGroup, 2023).
Why New Collar Roles Are Booming
- The skills gap is widening.
Technology is evolving faster than traditional education can keep up. Companies are struggling to find people with the right skills — and smart employers know that insisting on a degree means missing out on great talent.
It’s no surprise that skills-based job postings rose by 63% in 2023 (LinkedIn Economic Graph).
- AI and automation demand new skills.
IBM predicts that 120 million workers worldwide will need reskilling in the next three years due to AI and automation. While repetitive tasks are automated, new opportunities are opening for people who can manage, interpret, and improve these technologies — a perfect fit for the new collar mindset.
- Inclusion and access matter more than ever.
Skills-based hiring opens doors for people who can’t pursue a traditional degree due to financial, time, or personal constraints — and for career changers, or workers in declining industries who need to reskill.
What’s In It for Employers?
- Bigger talent pools: Hiring for skills unlocks overlooked talent.
- Better retention: A Burning Glass Institute study found that 44% of employers say skills-based hiring improves retention and increases internal mobility.
- Diversity & inclusion: Non-traditional pathways help level the playing field for underrepresented groups.
What’s In It for Workers?
- Accessible careers: Kick-start your career without years of studying and financial burden.
- Career resilience: Learning new skills keeps you employable in a world where roles change overnight.
- Empowerment: Workers gain more agency in shaping their future — and 76% now say they prefer employers that offer upskilling and career development (LinkedIn Workplace Learning Report, 2024).
But There Are Challenges, Too
We can’t talk about new collar work without acknowledging what still holds it back:
- Bias: Many employers still default to “degree required” in job postings.
- Quality training: Workers need access to credible, relevant upskilling opportunities.
- Support systems: Career changers need time, mentorship, and pathways that pay a living wage while they learn.
What Needs to Happen Next
- Companies: Ditch unnecessary degree requirements. Invest in apprenticeships and continuous training. Hire for potential, not just pedigree.
- Workers: Embrace lifelong learning. Stack micro-credentials and certifications that prove your skills.
- Policymakers: Fund upskilling and reskilling initiatives. Build bridges between employers and training providers.
A New Collar Future
The rise of New Collar Work shows us that skills, not degrees, will define how we hire, grow, and compete in the years to come. It means more people can build meaningful careers without barriers — and employers can close critical skills gaps by tapping into overlooked talent.
Personally, I’m living proof of this. My degree is in actuarial science — far from HR — but the analytical and quantitative skills I gained have become my secret weapon in building data-driven, efficient, people-focused services. That’s the power of new collar work.
It’s time to embrace a skills-first mindset. Is your company ready?
How are you — as a leader, recruiter, or worker — preparing for this skills-first future?
#NewCollar #SkillsBasedHiring #FutureOfWork #TalentDevelopment #LifelongLearning
Sources
- Harvard Business Review: “The Emerging Degree Reset” (2023)
- Burning Glass Institute, Emsi Burning Glass
- National Skills Coalition Reports
- LinkedIn Workplace Learning Report 2024
- IBM Institute for Business Value
- ManpowerGroup Talent Shortage Survey 2023
- LinkedIn Economic Graph Data