In the job market, the growing emphasis on credentials has created significant challenges for employers, job seekers, educational institutions and the broader economy, writes Nasim Ahmed
BANGLADESH has seen remarkable growth in education, higher education institutions and professional certification programmes. While this expansion has contributed to human capital development, it has also given rise to a phenomenon commonly referred to as ‘credential culture,’ in which academic degrees, certificates and formal qualifications are often valued more than skills, competence and practical experience.
In the job market, this growing emphasis on credentials has created significant challenges for employers, job seekers, educational institutions and the broader economy. The rise of credential culture reflects deeper structural issues in recruitment practices, educational quality, social perceptions and labour market dynamics.
Credential culture is the tendency of organisations and society to assess an individual’s worth primarily by educational qualifications rather than by demonstrated abilities. Employers often set minimum educational requirements, prefer certain universities and require multiple professional certifications, even for roles where practical skills may be more relevant. Consequently, earning degrees and certificates has become a central objective for many job seekers.
Several factors have contributed to the growth of credential culture. A major factor is the intense competition for limited formal-sector jobs. Faced with large applicant pools, employers use academic qualifications as a convenient filter. Degrees and certificates become signals of competence, even though they may not accurately reflect skills or job performance.
Another contributing factor is the social prestige attached to educational credentials. Academic achievements are often seen as indicators of intelligence, social status and future success. Families often encourage students to earn degrees and certifications to improve their social standing and employment prospects. This societal pressure reinforces the belief that credentials are more valuable than practical expertise, entrepreneurship, creativity or vocational skills.
One consequence of credential culture is the growing mismatch between education and employment. Many employers struggle to find candidates with the skills needed to meet workplace demands, even as the number of graduates entering the labour market continues to rise. This paradox underscores a disconnect between academic qualifications and labour market requirements. Degrees may indicate educational attainment, but they do not necessarily guarantee professional competence.
The information technology sector offers a clear example of this phenomenon. Many successful software developers, programmers and digital entrepreneurs build their expertise through self-study, online courses, hands-on projects and industry experience rather than formal academic pathways. Nevertheless, recruitment systems often prioritise degree holders over individuals with demonstrated technical capabilities. Such practices may prevent organisations from accessing talented candidates whose skills exceed their formal qualifications.
Credential culture also contributes to graduate unemployment and underemployment. Many young people invest significant time and resources in pursuing multiple degrees, diplomas and certifications in hopes of securing desirable employment. Positions that once required a bachelor’s degree may now prefer a master’s degree or additional certifications. Consequently, individuals acquire more credentials merely to remain competitive rather than to enhance their productivity.
Another implication is the marginalisation of technical and vocational education. Many students and parents view technical education as less prestigious than university education, even though vocational graduates possess highly marketable skills. This preference for academic credentials contributes to shortages of skilled technicians, mechanics, electricians and other technical professionals essential to industrial development and economic growth.
The dominance of credential culture may also discourage innovation and entrepreneurship. When success is narrowly defined by formal education, alternative pathways, such as skill-based careers, freelancing, start-ups and creative professions, often receive less recognition. This mindset can limit the development of a dynamic, adaptable workforce capable of responding to technological change and evolving market demands.
However, recent developments suggest the possibility of gradual change. The growth of freelancing, digital platforms, remote work opportunities and skill-based recruitment practices is challenging traditional assumptions about qualifications. Employers in sectors such as information technology, digital marketing, graphic design and software development increasingly evaluate candidates based on portfolios, project experience and demonstrable competencies rather than solely on academic credentials.
To address the challenges of credential culture, Bangladesh must better align education with labour market needs. Educational institutions should place greater emphasis on experiential learning, internships, problem-solving, communication skills and industry collaboration. Employers should adopt competency-based recruitment systems that assess practical abilities alongside academic qualifications. Furthermore, policymakers should promote the social value of vocational and technical education and encourage lifelong learning and continuous skill development.
While credentials can be useful indicators of educational attainment, excessive reliance on them often diminishes the value of practical skills, competence and innovation. The resulting mismatch between education and employment poses significant challenges for both job seekers and employers. Achieving sustainable economic development will require a balanced approach that recognises the importance of education while placing equal emphasis on skills, experience, creativity and professional capability.
Dr Nasim Ahmed is former additional secretary to the government and currently works as associate professor of public policy at the Bangladesh Institute of Governance and Management (a constituent institute of the University of Dhaka).
