Employers Are Hiring For Skills Over Degrees Now. AI Is Why

Seventy percent of employers now use skills-based hiring, up from 65% a year earlier, and 53% have eliminated degree requirements entirely, up from just 30%, according to the National Association of Colleges and Employers Job Outlook 2026 survey and TestGorilla’s 2025 hiring data. More than a third of entry-level jobs now require some level of AI competency, nearly triple the share reported in fall 2025, according to NACE’s spring update. The credential that used to jumpstart a career is opening fewer doors than it did two years ago, and the pace of that shift is accelerating.

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