A few weeks ago, I found myself having one of those conversations that every parent eventually has with their teenager. My son asked, "Is college even worth it anymore?" I immediately launched into what was probably a predictable parental response about education opening doors, creating opportunities, finding passions, having experiences, and creating new friendships and connections. But then he argued that speeches by big-tech CEOs all over the country are making their way to his social media feed insisting that artificial intelligence is about to eliminate white-collar jobs, that college degrees are becoming obsolete, and that young people like him are better off skipping college, learning practical skills, and entering the workforce as quickly as possible.

As an employment lawyer, I spend my days advising employers on workforce trends, recruiting challenges, and the future of work. Yet hearing this perspective directly from someone preparing to enter college made me realize just how dramatically the conversation around higher education has changed. And perhaps more importantly, it made me wonder whether employers are prepared for what comes next.

Recently, SHRM Labor Economist Andrea Medici examined this very issue in an article entitled Rethinking the College-to-Career Pipeline. Her findings confirm what many employers are beginning to observe firsthand. For decades, earning a bachelor's degree generally translated into greater job security. In the early 2000s, young adults with only a high school diploma consistently experienced significantly higher unemployment rates than their college-educated peers. During the Great Recession, that difference became even more pronounced. A college degree acted as a powerful shield during periods of economic uncertainty.

Today, however, the landscape looks different. According to SHRM's analysis, by March 2026 the unemployment gap between young workers with bachelor's degrees and those with only high school diplomas had narrowed to less than 2%. At the same time, the percentage of employed young adults ages 20 to 24 who have attended college has declined significantly since its peak in 2020.

The reasons are likely multifaceted. High college tuition costs and alternative educational pathways—including certifications, apprenticeships, trade programs, and micro-credentials — have become more accessible and respected. And, perhaps most interestingly, many young people are questioning whether spending four years preparing for entry-level professional jobs makes sense if AI may fundamentally reshape those positions before they even graduate. Whether those fears are justified remains to be seen. But perceptions often influence behavior just as much as reality.

As employers, we should pay attention. This shift does not necessarily mean college has lost its value. For many professions, higher education remains essential, and research continues to show that bachelor's degree holders generally earn more over the course of their careers than individuals with only a high school diploma.

What is changing is how young workers evaluate their options — and how employers should evaluate talent. Many organizations continue to require four-year degrees for positions when instead the actual work may depend more heavily on communication skills, problem-solving ability, adaptability, customer service, technical aptitude, or demonstrated experience than on a diploma itself.

That hiring model deserves thoughtful reconsideration. Forward-thinking employers are increasingly embracing skills-based hiring by expanding recruiting efforts beyond traditional degree requirements. They are investing in apprenticeships, mentorship programs, on-the-job training, tuition assistance, and clear career development pathways that allow employees to continue learning long after their first day on the job. This approach not only expands the talent pool but also creates opportunities for motivated individuals who may have chosen a different educational path.

The challenge, however, does not end with hiring. If more young adults enter the workforce earlier, employers will bear greater responsibility for developing professional skills that colleges have traditionally helped cultivate. Communication, workplace civility, critical thinking, professionalism, conflict resolution, leadership, and business judgment may increasingly need to be taught inside the workplace rather than assumed at the time of hire. That represents both a challenge and an opportunity. College is a place where people explore a wide range of courses, meet people with different backgrounds, and, importantly, mature.

So, the question is no longer simply whether a college degree is "worth it." The better question — for both young workers and employers — is how we prepare people for careers that may evolve multiple times over the next several decades. Organizations that recognize this shift and invest in skills-based hiring and ongoing employee development will be best positioned to attract, retain, and grow the next generation of talent.