Many young people are told pursuing higher education is a golden ticket to landing a “real job.” Yet nearly three-quarters of the population believe that college degrees are less important for getting higher-paying jobs than practical skills. And they’re not wrong.
Non-degree jobs, like those in construction, maintenance, transportation, and other services, enjoyed the fastest rise in pay in 2022, according to the Bureau of Labor Statistics. The Federal Reserve Bank of Atlanta’s Wage Growth Tracker also reveals workers with only a high school degree have consistently outpaced college grads since the pandemic hit in 2020.
The data resonates with a broader sentiment in the population as attitudes towards college degrees shift. The tight labor conditions that have prevailed since the pandemic has proven formal qualifications only get you so far. To get ahead, employees need practical skills that can help move a company’s bottom line.
According to a survey published by JobSage last month, 69% of respondents believe college degrees will be less important for getting well-paying jobs in the years ahead. At the same time, nearly three-quarters (72%) would skip college if their ideal job didn’t require it. What’s more, of those surveyed who went to college, most have not found it useful (only one in four say their degree has helped a lot in their career so far).
This post will look at occupations that don’t require a formal college degree and other pathways for increased earnings.
The Gig Economy
Higher educational degrees do not lead to higher hourly wages for online gig workers.
Technological Forecasting and Social Change highlight the irrelevance of traditional education in this new paradigm. After analyzing data on 1607 gig workers in 14 Western economies, the researchers found higher educational degrees do not lead to higher hourly wages for online gig workers. That’s good news for the more than 77 million American workers who don’t have a college degree.
With the growth of the gig economy and the freelancers, a whole new ecosystem of side hustles has evolved in recent years. With low to no entry barriers, this shift empowers individuals to build their skills, develop product offerings, become their own bosses, and increase their profits.
There is a plethora of marketplaces for these digital professionals, from Upwork to Fiverr and SolidGigs, Remotees, and many more. These enable users to set up a profile, list their prices, find clients, and start earning. For instance, tutoring is among the fastest-growing online hustles, with platforms such as TutorMe, which connects students with teachers, proliferating.
This presents excellent opportunities for folks without a college degree, as qualifications are typically not needed. There are dozens of high-income skills you can learn to earn in this space, from digital marketing to social media management, and from graphic design to copywriting.
This month ZipRecruiter estimated the average hourly pay for a freelancer at $33.13. Many may start out working for less. Yet, freelancers can dramatically increase their rates with experience, niche-specific knowledge, and a steady inflow of clients.
Those who want to aim for higher salaries can still aim to enter into technology or finance.
A ‘Fintech’ Future
Formal qualifications aren’t required for web development. While having a Computer Science degree is sure to boost your resume, it is by no means the only way to land a tech job. Typically, tech startups hire based on the applicant’s coding skills rather than their alma mater. Learning to code is essential for any aspiring web developer. Many low-priced online courses and boot camps are available to help aspiring developers get their start in the innovative, high-growth industry.
Most positions in finance require a college degree, especially those in management. However, several roles in finance and adjacent fields do not, such as insurance sales agent.
Often, these jobs can serve as an entry point into a bank, accounting, or investment firm. Depending on one’s experience and skills, further advancement may be possible. Like technology, a career in finance can be highly lucrative. It is a rapidly-developing industry too. Opportunities in financial and business operations are forecast to swell by 8% this decade, according to the Bureau of Labor Statistics. Demand is even higher for the financial advisor segment, which will grow at a rate of 15% from 2021 to 2031, far outstripping other occupations.
Real estate investment trusts (REITs) are another promising career path for those who understand property and investment. These trusts own and operate income-generating real estate, enabling investors to earn dividends without the hangups of property ownership. Becoming first a real estate agent (which only requires a high school diploma) may be a practical entry point into this segment for those without a college degree.
The pandemic transformed work permanently, and employers and employees are still adjusting to the new realities. Recent trends hint that future job prospects may depend less on formal education than in the past. Whether it be through on-the-job training with an employer or upskilling yourself to become a freelancer or entrepreneur, there a many ways to increase your income in the robust U.S. labor market this year.