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The Evolving Job Market: Why Degrees Are Losing Their Value

The job market is undergoing significant changes, with traditional degrees losing their value in favor of specific skills and competencies. Harvard economists highlight that degrees in fields like computer science and business administration are becoming less relevant. As competition increases, students are shifting their focus towards STEM and career-oriented programs. This article delves into the degrees that are losing market value and emphasizes the importance of skills such as critical thinking and creativity for future job seekers. Discover what qualifications are now essential for success in this evolving landscape.
By Ambika Singh Oct 15, 2025, 14:06 IST
The Evolving Job Market: Why Degrees Are Losing Their Value

Changing Job Market Dynamics



As the job landscape evolves, the criteria for securing desirable employment have also transformed. Economists from Harvard have shed light on the declining significance of degrees in today's market.


In recent years, advancements in technology have intensified market competition. Consequently, individuals are now compelled to acquire specific skills to attain lucrative positions, leading to a decrease in the perceived value of traditional degrees. This shift has left many students questioning the effectiveness of their qualifications in securing promising job prospects.


Degrees: Once a Symbol of Success

Research conducted by Harvard labor economist David J. Deming and colleague Kadhim Nore in 2020 revealed that degrees in fields such as applied sciences, computer science, engineering, and marketing are increasingly viewed as inadequate. These qualifications, once deemed essential for success, are now seen as outdated. Even graduates from prestigious MBA programs are facing challenges in finding high-paying roles, indicating a decline in the allure of a degree.


Declining Interest in Humanities

The troubling state of applied sciences is mirrored by a waning interest in humanities among students. Data from the Harvard Crimson indicates a drop in the number of students pursuing humanities, with a noticeable shift towards STEM and career-oriented programs. Harvard's 2022 findings suggest that employers now prioritize degrees that emphasize specific skills and digital proficiency over more generalized qualifications.


Degrees Losing Market Relevance

The Harvard report identifies ten degrees that are experiencing a decline in market value:


1. General Business Administration (including MBA)


2. Computer Science


3. Mechanical Engineering


4. Accounting


5. Biochemistry


6. Psychology (Undergraduate)


7. English and Humanities


8. Sociology and Social Science


9. History


10. Philosophy


Skills in Demand for Future Success

According to a report on student preferences for 2025, there is a strong market demand for skills in engineering, computer science, and nursing. In this competitive environment, students who possess not only a degree but also critical skills, creativity, and analytical thinking will be better positioned to thrive.


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