Professional Documents
Culture Documents
Emerging
Degree Reset
How the Shift to Skills-Based Hiring Holds
the Keys to Growing the U.S. Workforce
at a Time of Talent Shortage
Contents
Executive Summary 3
Introduction 4
Ups and Downs: How This Crisis is Different From the Great Recession 7
Potential Impact 20
Conclusion 22
Appendix 23
Authors 27
Endnotes 28
• When employers drop degrees, they become more specific about skills in job
postings, spelling out the soft skills that may have been assumed to come with a
college education, such as writing, communication, and being detail-oriented.
This reset could have major implications for how employers find talent and open
up opportunities for the two-thirds of Americans without a college education.
Based on these trends, we project that an additional 1.4 million jobs could open to
workers without college degrees over the next five years.
FIGURE 1: Relationship between minimum Notes: The shaded areas indicate the Great Recession
and the Covid-19 Recession.
education requirements in job postings and
Source: Analysis of data from Emsi Burning Glass and
unemployment rate Bureau of Labor Statistics, 2007-2021.
8
25
20
4
40
a bachelor’s degree in 2017. In 2020, only 62%
required a degree.
81%
65% 74%
59% 62%
54% 34%
28%
26%
Structural
35%
67%
56% 60% 24% 23% 34%
32% 29%
Cyclical
Occupation Career Change Change BA+ share Number of BA+ share Number of BA+ Number of
Family 2017 – 2019 – 2017 (%) postings 2019 (%) postings share postings
2019 (%) 2020 (%) 2017 2019 2020 (%) 2020
Personal Finance -8.56% -8.06% 84.06% 75,984 76.87% 68,804 70.67% 55,586
Financial
Advisor
Loan Officer Finance -11.21% -16.90% 58.90% 64,942 52.29% 72,828 43.46% 117,071
Paralegal/ Law, Com- -9.30% -8.52% 65.07% 47,313 59.02% 84,429 53.99% 74,928
Legal Assis- pliance,
tant and Public
Safety
Claims Finance -8.51% -4.88% 61.47% 37,406 56.24% 49,802 53.50% 43,521
Specialist/
Adjuster/
Examiner
Real Estate Sales -23.64% -22.53% 43.35% 84,076 33.10% 121,294 25.64% 145,403
Agent/
Broker
Mainte- Mainte- -14.39% -11.98% 33.14% 77,292 28.37% 119,388 24.97% 126,702
nance/ nance,
Service Repair, and
Supervisor Installa-
tion
Property/ Business -16.41% -10.24% 49.58% 41,118 41.44% 87,846 37.20% 102,156
Real Estate/ Manage-
Community ment and
Manager Operations
Human Human -5.16% -5.19% 32.98% 25,524 31.28% 34,447 29.66% 29,473
Resources Resources
Assistant
Source: Emsi Burning Glass data. Occupations are sorted by the number of postings in 2017.
Occupation Career Change Change BA+ Number of BA+ share Number of BA+ Number of
Family 2017 – 2019 – share postings 2019 (%) postings share postings
2019 (%) 2020 (%) 2017 (%) 2017 2019 2020 (%) 2020
Source: Emsi Burning Glass data. Occupations are sorted by the number of postings in 2019.
Notes: Orange shading reflects a higher prevalence of degree requirement than the national average for that
occupation. Green shading reflects a lower prevalence.
Source: Analysis of Emsi Burning Glass data, 2021.
National Amazon Apple Google Microsoft Accenture IBM Facebook Intel HP Oracle
Computer Support 24% 11% 55% 55% 54% 9% 42% 50% 50% 6% 93%
Specialist
Software Developer / 60% 76% 65% 80% 62% 40% 31% 84% 98% 84% 99%
Engineer
Software QA Engineer 54% 80% 90% 84% 87% 26% 29% 66% 94% 92% 100%
Network Administrator 52% 59% 73% 76% 21% 50% 34% 91% 84% 71% 100%
60
40
20
0
Business Intelligence
Architect / Developer
Computer
Programmer
Computer Support
Specialist
Computer Systems
Engineer / Architect
Data Warehousing
Specialist
Database
Administrator
Database
Architect
Network Engineer
/ Architect
Software Developer
/ Engineer
FIGURE 6: Accenture: Degree reset in IT occupations
Notes: Bars show the vacancy-weighted share of BA+ postings in specific IT occupations at Accenture. Source:
Analysis of Emsi Burning Glass data, 2017 and 2021.
We do not see an equivalent change in job postings now up to 96% vs. 87% in 2017. This suggests
for other big tech employers like Facebook, Intel, a lag between corporate rhetoric and practical
or Microsoft -- all of which have announced some implementation of skills-based hiring strategies.
reduction in their degree requirements. As reflected There appears to be a significant opportunity for
in Figure 5, these firms have not materially reduced more companies in the technology sector to follow
the number of actual positions requiring degree. In through on implementing broad policy changes
fact, Intel has seen a material increase in its reliance that revise the requirements for specific positions,
on degree-based hiring, with the percentage of IT following in the footsteps of IBM and Accenture.
postings specifying a bachelor’s degree or above
FIGURE 7: Skill Percentage Point Changes in Degree Reset Occupations Between 2017 and 2019
Notes: The graphs show examples of skill changes in occupations that saw degree resets between 2017 and
2019. Percentage point changes are shown.
Source: Analysis of data from Emsi Burning Glass.
Personal Financial Advisor Insurance Sales Agent Real Estate Agent Broker
Communication Skills Insurance Underwriting Leasing
Customer Contact Purchasing Organizational Skills
Computer Literacy Communication Skills Detail-Oriented
Planning Sales Goals Real Estate Experience
Investment Strategy Self-Starter Property Management
Wealth Management Health-insurance Sales Teamwork / Collaboration
Financial Services Industry Multi-tasking Computer Literacy
Multi-tasking Budgeting Microsoft Office
Scheduling Appointment Setting Yardi Software
Microsoft Office Microsoft Excel Written Communication
0% 5% 10% 15% 0% 2% 4% 6% 0% 2% 4% 6% 0% 2% 4% 6%
BA+ share change BA+ share change BA+ share change BA+ share change
-30% -40% -33% -11%
0% 4% 8% 0% 5% 10% 15% 0% 2% 4% 6% 0% 2% 4% 6%
BA+ share change BA+ share change BA+ share change BA+ share change
-9% -24% -12% -47%
Occupation Career Change Change BA+ share Number of BA+ share Number of BA+ Number of
Family 2017 – 2019 – 2017 postings 2019 postings share postings
2019 (%) 2020 (%) 2017 2019 2020 2020
Insurance Finance -32.98% -11.95% 61.52% 121,516 41.23% 164,742 36.30% 219,140
Sales Agent
Network/ Informa- -2.83% -2.13% 82.20% 121,082 79.87% 128,070 78.17% 102,900
Systems Ad- tion Tech-
ministrator nology
General Man- Business -4.29% -2.17% 79.45% 102,858 76.04% 140,068 74.39% 131,365
ager Manage-
ment and
Operations
Personal Finance -8.56% -8.06% 84.06% 75,984 76.87% 68,804 70.67% 55,586
Financial
Advisor
Construction Con- -3.80% -3.43% 75.75% 71,515 72.87% 128,510 70.37% 129,720
Manager struction,
Extraction,
and Archi-
tecture
Loan Officer Finance -11.21% -16.90% 58.90% 64,942 52.29% 72,828 43.46% 117,071
Office Man- Clerical -1.72% -7.90% 56.14% 63,458 55.17% 91,736 50.81% 75,470
ager and Ad-
ministra-
tive
Computer Informa- -4.88% -0.14% 82.9% 63,124 78.86% 83,904 78.75% 75,832
Programmer tion Tech-
nology
Compensa- Human -2.39% -0.42% 88.73% 56,151 86.60% 58,772 86.24% 43,371
tion/Benefits Resources
Analyst
Real Estate Sales -23.64% -22.53% 43.35% 84,076 33.1% 121,294 25.64% 145,403
Agent /Broker
Maintenance/ Mainte- -14.39% -11.98% 33.14% 77,292 28.37% 119,388 24.97% 126,702
Service Su- nance,
pervisor Repair, and
Installa-
tion
Preschool/ Education -12.01% -18.56% 25.36% 72,412 22.31% 149,438 18.17% 154,476
Childcare and Train-
Teacher ing
Production Manufac- -2.84% -9.75% 37.62% 59,692 36.55% 74,728 32.99% 77,690
Supervisor turing and
Production
Coach Education -20.77% -2.63% 41.19% 51,247 32.64% 97,358 31.78% 88,597
and Train-
ing
Sales Super- Sales -3.19% -6.76% 39.86% 49,867 38.59% 64,865 35.98% 55,191
visor
Property/ Business -16.41% -10.24% 49.58% 41,118 41.44% 87,846 37.20% 102,156
Real Estate/ Manage-
Community ment and
Manager Operations
Bill and Clerical -3.79% -16.64% 25.89% 34,219 24.91% 46,498 20.76% 47,051
Account Col- and Ad-
lector ministra-
tive
Human Human -5.16% -5.19% 32.98% 25,524 31.28% 34,447 29.66% 29,473
Resources Resources
Assistant
Source: Emsi Burning Glass Data. Occupations are sorted by the number of postings in 2017.
Occupation Career Change Change BA+ share Number of BA+ share Number of BA+ Number of
Family 2017 – 2019 – 2017 postings 2019 postings share postings
2019 (%) 2020 (%) 2017 2019 2020 2020
Recruiter Human +4.45% -8.11% 65.63% 120,745 68.54% 164,674 62.98% 119,639
Resources
Software QA Informa- +0.46% -2.40% 88.65% 99,330 89.06% 137,943 86.92% 110,389
Engineer/ tion Tech-
Tester nology
Human Re- Human +3.87% -1.82% 68.88% 89,144 71.55% 120,766 70.24% 103,733
sources/ La- Resources
bor Relations
Specialist
Database Informa- +7.48% -1.50% 76.82% 104,179 82.57% 117,932 81.33% 94,834
Administra- tion Tech-
tor nology
Clinical Case Health +23.85% -6.19% 44.47% 86,787 55.08% 117,521 51.67% 116,039
Manager Care
including
Nursing
Nursing Health +12.15% -2.31% 48.41% 105,119 54.29% 100,564 53.04% 102,637
Manager/ Care
Supervisor including
Nursing
Executive Clerical +3.22% -4.01% 53.12% 57,557 54.83% 83,663 52.63% 59,570
Assistant and Ad-
ministra-
tive
Customer Customer +19.47% -10.87% 56.16% 28,583 67.10% 46,185 59.80% 41,450
Service and Client
Manager Support
Banking Finance +5.81% -8.72% 51.56% 41,488 54.56% 42,244 49.80% 34,710
Branch
Manager
Bookkeeper/ Finance +1.30% -6.85% 42.58% 245,618 43.13% 301,812 40.18% 270,446
Accounting
Clerk
Computer Informa- +0.65% -3.64% 44.42% 182,801 44.71% 231,303 43.08% 198,189
Support tion Tech-
Specialist nology
Intensive/ Health Care +45.46% -33.51% 24.18% 244,007 35.18% 168,707 23.39% 263,206
Critical Care including
Nurse Nursing
Sales Assis- Sales +16.23% -5.69% 29.32% 36,853 34.08% 42,381 32.14% 33,312
tant
Billing Clerk/ Clerical and +4.91% -13.78% 32.29% 32,414 33.87% 42,270 29.20% 36,847
Specialist Adminis-
trative
Construction Con- +0.76% -17.07% 39.31% 21,485 39.61% 36,093 32.85% 41,682
Foreman struction,
Extraction,
and Archi-
tecture
Interpreter/ Design, +31.28% -12.86% 29.07% 29,526 38.17% 26,006 33.26% 26,184
Translator Media, and
Writing
Insurance Finance +27.89% -15.92% 28.48% 16,930 36.42% 21,027 30.63% 17,961
Claims/Policy
Clerk
Residential Community +2.96% -14.16% 25.84% 16,033 26.60% 20,932 22.84 25,564
Assistant/ and Social
Advisor Services
Source: Emsi Burning Glass Data. Occupations are sorted by the number of postings in 2017.
Published by Accenture, Grads of Life, Harvard Business School and Peter Q. Blair, Tomas G.
Castagnino, et. al., Searching for STARs: Work Experience as a Market Signal for Workers Without
Bachelor’s Degrees, National Bureau of Economics Working Paper #26884
4 See Fuller, J., Raman, M., et al. (October 2017). Dismissed By Degrees.
Published by Accenture, Grads of Life, Harvard Business School and Peter Q. Blair, Tomas G.
Castagnino, et. al., Searching for STARs: Work Experience as a Market Signal for Workers Without
Bachelor’s Degrees, National Bureau of Economics Working Paper #26884
5 https://trumpwhitehouse.archives.gov/presidential-actions/executive-order-modernizing-
reforming-assessment-hiring-federal-job-candidates/ and https://www.whitehouse.gov/wp-
content/uploads/2021/01/Limiting-Use-of-Educational-Requirements-in-Federal-Service-Contracts.
pdf
6 Fuller, J., Raman, M., Sage-Gavin, E., Hines, K., et al (September 2021). Hidden Workers:
Untapped Talent. Published by Harvard Business School Project on Managing the Future of Work and
Accenture.
7 https://www.census.gov/newsroom/press-releases/2021/bachelors-degree-attainment.html
8 See Forsythe, Eliza, Lisa B. Kahn, Fabian Lange, and David G. Wiczer. Searching, recalls, and
tightness: An interim report on the covid labor market. No. w28083. National Bureau of Economic
Research, 2020.
Hershbein, Brad, and Lisa B. Kahn. “Do Recessions Accelerate Routine-Biased Technological Change?
Evidence from Vacancy Postings.” The American Economic Review 108, no. 7 (2018): 1737.
Wardrip, Keith, Stuart T. Andreason, and Mels De Zeeuw. “Uneven Opportunity: Exploring
Employers’ Educational. Preferences for Middle-Skills Jobs.” Special Report of the Federal Reserve
Banks of Philadelphia, and Atlanta (2017).
Modestino et al. 2020. “Upskilling: Do Employers Demand Greater Skills When Workers Are
Plentiful?”.
Modestino, A., Shoag, D., and Ballance, J. 2016. “Downskilling: Changes in Employer Skill
Requirements Over the Business Cycle.” Labour Economics, (41): 333-347,
Auguste, Shad Ahmed, Fernando Garcia Diaz, and Cristian Bonavida, Searching for Stars:
Work Experience as a Job Market Signal for Workers without Bachelor’s Degrees, National Bureau of
Economic Research Working Paper, http://www.nber.org/papers/w26844.
9 We define low-skill jobs as those with a BA+ share below 25%, middle-skill as those between
25% and 50%, and high-skill as those above 50%. The focus of our analysis lies on occupations with
an average BA+ share between 25% and 90% in 2017.
12 We used the Burning Glass Occupation taxonomy, which contains 679 distinct occupations.
411 of them were considered middle- or high-skill.
13 Modestino et al. (2020) – Upskilling: Do Employers Demand Greater Skills When Workers Are
Plentiful?
14 Sub-BA jobs have a BA+-share below 50%, BA+ jobs have a BA+-share equal to or above 50%.
15 Structural occupations experience a decrease in degree requirements between 2017 and 2019.
If this trend continues between 2019 and 2020, we also refer to those occupations as structural. By
contrast, cyclical refers to a decrease only during the pandemic period between 2019 and 2020, not the
earlier years.
16 https://www.conference-board.org/pdfdownload.cfm?masterProductID=38217.
17 In total, structural occupations account for 15.6% of postings in 2017 and 16.5% in 2019.
18 Fuller, J., Raman, M., et al. (October 2017). Dismissed By Degrees. Published by Accenture,
Grads of Life, Harvard Business School.
19 Ibid, p. 8.
23 Fuller, J., Raman, M., et al. (October 2017). Dismissed By Degrees. Published by Accenture,
Grads of Life, Harvard Business School.
24 Ibid, p. 14
25 Ibid, p. 20-23.
26 Fuller, J., Raman, M., Sage-Gavin, E., Hines, K., et al (September 2021). Hidden Workers:
Untapped Talent. Published by Harvard Business School Project on Managing the Future of Work and
Accenture.
27 Deming, D.The Growing Importance of Social Skills in the Labor Market, The Quarterly
Journal of Economics (2017), 1593–1640. doi:10.1093/qje/qjx022.
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