College Degrees vs. Nondegree Credentials: Impact on Pay and Hiring Access

U.S. Employers are increasingly removing college degree requirements from job postings, yet data indicates that a strong preference for traditional degrees remains prevalent in hiring decisions. According to a 2026 Lumina Foundation-Gallup survey of 2,000 U.S. Employers, 23% of respondents stated they had removed degree requirements from some roles over the previous three years, while another 20% reported they were in the process of doing so.

Despite the trend of dropping these requirements, the transition has not resulted in a significant surge in the hiring of workers with nondegree credentials. Research from OneTen and the Burning Glass Institute, which analyzed hiring patterns across more than 1,000 major U.S. Employers, found that companies removing degree requirements saw only a 2-percentage-point increase in the share of hires holding nondegree credentials.

Employer Preferences and Degree Value

The data suggests that while job descriptions may be changing, employer preferences have not shifted as dramatically. Approximately 76% of employers prefer candidates with a bachelor’s degree, and 78% prefer candidates with an associate degree, even for positions where those degrees are not strictly required.

About half of the Gallup survey respondents indicated that most jobs within their organization require a degree for the employee to be successful. Only 54% of employers believe that degrees alone are sufficient to prove a candidate’s job readiness.

The shift toward credentialed workers is most prominent in specific sectors. The information and technology sectors are more likely to hire workers with nondegree credentials than other industries.

The Economic Impact of Nondegree Credentials

While degrees remain the preferred qualification, nondegree credentials provide measurable economic benefits and can increase access to employment. Evidence from 37 million U.S. Workers indicates that these credentials have a direct impact on wages.

View this post on Instagram about Nondegree Credentials, Gallup

Data shows that each additional relevant credential yields 1.5% higher wages for nondegree holders, compared to a 1.0% increase for college graduates. This suggests a higher marginal return on credentials for those who do not hold a degree.

The value of these credentials is further amplified when combined with traditional degrees. According to a 2021 Strada-Gallup Education Survey of nearly 14,000 adults, 70% of individuals who held both an associate degree and a nondegree credential believed their education made them an attractive job candidate. In contrast, only 43% of associate degree holders without a nondegree credential shared that view.

Comparing Educational Outcomes

Research into the outcomes of nondegree programs suggests they can be comparable to associate degree programs in certain respects. Sixty-five percent of those who completed nondegree programs stated their education was worth the cost, and 49% said it helped them achieve their goals. For associate degree holders, these figures were 59% and 43%, respectively.

The duration of the program does not always correlate with the perceived value. Eighty-five percent of individuals who completed a certificate program lasting between one week and one month reported it was worth the cost, while only 59% of those in programs lasting between six months and a year felt the same.

These findings contrast with broader labor statistics regarding formal education. U.S. Bureau of Labor Statistics data from 2024 shows that workers age 25 and over with less education than a high school diploma experienced the highest unemployment rate at 6.2% and the lowest median weekly earnings at $738. Conversely, workers with graduate degrees maintained the highest earnings and the lowest unemployment rates.