With 51 percent of Gen Z calling college a 'waste of money', Canadian HR should appreciate skills-first approaches, AI readiness, and lifelong learning
Are college or university degrees still worthwhile?
A recent survey by Indeed reveals a stark generational split in how workers view returns on a college education – 20 percent of Baby Boomers say their degree was a waste of money, compared with 41 percent of Millennials.
A striking 51 percent of Gen Z respondents feel they spent time and money on a credential that no longer pays off.
These findings underscore growing skepticism among younger cohorts in the US, where the report was conducted; however, Statistics Canada data reminds us why credentials still matter here; median employment income for workers with only a high‑school diploma stands at $25 000, while those holding a bachelor’s degree earn a median of $53,600.
Don’t disregard post-secondary degrees just yet
As Ron Babin, professor at the Ted Rogers School of IT Management, explains, Canada has one of the highest levels of education in the world – perhaps because of that steep earnings divide, but also due to tuition caps and more accessible education.
“Getting your degree is really important, because it'll be the difference of tens of thousands of dollars per year in your paycheque,” says Babin.
“So the money is there, the demand is there, we have more students now applying for college and university than perhaps we have ever had, even with the … dampened numbers of international students.”
Regardless of where you are, a college or university degree should signal more to employers than just books and classes – even with the introduction of AI turning skills development on its head.
“The value of a post-secondary education, fundamentally, is that it trains you to think and it trains you to think critically. It trains you to think laterally,” Babin says.
“Most employers will understand that. Where it gets tricky is the currency of the content.”
Degrees-plus: new supplemented credentials
Depending on the industry, post-secondary credentials can depreciate in value quickly – some, almost immediately. As Babin points out, graduates of his own discipline will be “obsolete in about four years after graduation, if they do not replenish their knowledge.”
This replenishing of knowledge, as well as co-op education experiences, internships and apprenticeship models, are the new benchmark which he recommends employers set their hiring to.
“Students in today's environment must, depending on their field, constantly be replenishing their knowledge,” Babin says, pointing to digital badges, continuing education and self-directed courses from reputable institutions as markers.
“If students don't do that, their knowledge currency decays, and all of a sudden, ChatGPT is smarter than they are.”
Expanding on what an actual degree represents for hiring managers, Babin explains that co-op programs are ideal experiences to look for in job candidates. The combined prolonged work placements and in-class learning that co-ops provide means the individual has gained valuable real-world experience.
Balancing skills‑first and lifelong learning
This hands-on experience is what gives employees the critical thinking and contextual judgement skills they will need to handle the power of AI technology on the job, however they are using it.
Internships also add value to a college or university degree, Babin says, as well as “articulation” between colleges and universities – combined degrees which can signal to employers that a candidate has had a more diverse education that may have included more work-style teaching methods.
Dropping degree floors can broaden the talent pipeline, but it also raises the imperative for ongoing skill development.
Babin notes that without continuous education, graduates’ knowledge depreciates much like a physical asset – and in fast‑moving fields such as IT and digital marketing, that depreciation can quickly render employees less effective.
“Not every job requires a university education,” Babin says, “our jobs are changing so much. One of the fundamental things you get from university education is the ability to learn. You teach yourself, and if you have to, rethink and re-teach for your next job or that promotion.”
Rethinking degree requirements in Canadian hiring
The growing acceptance of micro credentials or “digital badges” is notable; Babin says these largely self-directed credentials should be seen as not only skills attainment but proof that a job candidate is self-motivated and able to commit to task completion.
“The most difficult part of micro credentials and short-form executive courses is sticking with it, the motivation,” he says.
“For the people who want to stand out in a more competitive market, having experience, currency, credentials – both formal and digital credentials – will be what makes them stand out. And a fundamental, foundational part of that is a degree or a certificate from a recognized institution.”
Babin warns that proficiency with AI tools is now table stakes for not only individuals but organizations; in fact he tells his own students that if potential employers aren’t adopting AI at a pace that matches current development, they should think twice about applying.
“You'd be a darn fool if you weren't professionally investing in your personal ability to understand and use artificial intelligence, and your organization, depending on what it is, whether it's banking or telecommunications or writing articles, should also be investing in the ability of its employees.”
