Due to the recent large gap between job openings and unemployed workers, many companies and organizations have begun to rethink the thresholds for higher paying jobs. For many, this means removing the gold standard of higher education: a college degree.
This September, employers’ total job openings reached a seasonally adjusted 10.7 million, well above the 5.8 million unemployed people seeking work. The 4.9 million job gap has created an unusually stiff labor market and put pressure on employers to attract and retain workers.
PV economics teacher Erin Klage recognizes some of the factors that have led to the elevated job gap. “As we were bouncing back from COVID, positions that required less education were the ones that were growing. So I do think we are going to continue to see a job gap,” she said.
In an effort to incentivize workers, many companies have raised wages and increased benefits. Target announced at the beginning of 2022 that they would increase their minimum wage to $15-24 per hour, depending on location. They also announced that any worker who works more than 25 hours per week will qualify for health care benefits.
Many companies have also started to reduce requirements for high-paying jobs in an effort to attract more workers.
Companies such as Google and Delta Air Lines have reduced higher education requirements for certain positions. The state of Maryland also cut college degree requirements for numerous state jobs. A 4-year degree is now optional for many positions, as many companies begin to value extensive experience over education.
This recent change in the job market has provided new angles on the debate about the benefits and drawbacks of encouraging people to attend four-year colleges and universities.
There is no doubt that a college degree provides opportunities, but recently many young people have begun to debate whether the opportunities are worth the cost that is usually associated with a degree. The increasing opportunities for workers without degrees have gradually changed students’ ideas of a career path.
PV Senior and Walmart associate Cael Stewart plans on pursuing a 4 year degree at Iowa State. In his time at Walmart, he has experienced firsthand the increasing opportunities for degree-less workers to achieve high paying jobs. “Walmart provides many high-paying jobs to many different people. There are many people that have worked there for a long time and have garnered lots of loyalty and very good salaries,” he said.
Walmart, the country’s largest private employer, reported that 75% of its U.S. salaried store management started their careers in hourly jobs. Walmart executive vice president Kathleen McLaughling said at an online event this fall that the company’s goal is to shift the “focus from the way someone got their skills, which is the degree, to what skills do they have.”
The stiff job market, and the excess of jobs associated with it, is undoubtedly putting pressure on companies. This most recently manifested itself in many companies and organizations loosening the need for a college degree. While the job market will most likely gradually move to equilibrium over the next few years, the present gap is providing a unique opportunity for many workers as companies begin to highly value experience.
Cole Pearson • Dec 12, 2022 at 7:37 pm
I think that it is good to see more and more job openings but it is sad to see that companies like target have to incentivize workers this much to get them to work. I do not like the idea of millions of people living off of unemployment. That just shows that people are lazy. They now have no excuse to longer get a job because there are plenty of openings.
CJ Smith • Dec 9, 2022 at 1:29 pm
I think the approach taken on the companies you researched was very smart. The Interview sources were a great choices because they would best understand the current stability of the labor market.