Canadian degrees still pay off, but employers increasingly demand practical skills Canadian university degrees continue to improve average earnings and help candidates stand out, but employers increasingly expect technical skills, practical experience and workplace readiness. Rising tuition, graduate debt and an AI-driven job market are prompting students to question the value of degrees on their own. As roughly two million students return to Canadian colleges and universities this month, many are questioning whether a degree remains worth the time and money. The debate comes as artificial intelligence rapidly changes the job market and employers increasingly seek candidates who can combine academic knowledge with practical skills. Leeroy Mudhikwa, a Simon Fraser University student studying data science, has one year left in his program. During the summer, he ran a painting business to broaden his experience beyond school in case he cannot find a job after graduation.'I learn how to hire people, you know, to recruit, learn how to run a business,' Mudhikwa said. 'I really have enjoyed that aspect of it all. ' His experience reflects a growing emphasis on skills that can be demonstrated in workplaces, not only subjects completed in classrooms. At the University of British Columbia, economics student Aiden Thomas is questioning whether continuing his studies is the best use of his time and money.'I feel like the worth of a degree is becoming less and less, of course, dependent on the specific degree,' he said. Tara Parry, a hiring expert and director of permanent services with Robert Half, said university education still has value, but increasingly must be paired with experience and job-specific abilities.'A university degree is still worth it, but not on its own,' Parry said. 'It doesn't guarantee a job the same way it used to. ' Parry said a degree can demonstrate qualities employers value, including time management, the ability to manage a workload, preparedness and reliability.However, companies are looking for more than formal education.'It's not just education alone, it's skills,' she said. 'It's technical skills, it's practical experience, it's applicable experience as well as foundational knowledge. ' Those skills can be developed through internships, co-operative placements, apprenticeships, applied projects, technical training and other opportunities taken while studying. Parry said students pursuing general arts degrees should actively seek relevant experience that connects their education with the requirements of potential jobs.The pressure is greater because university education costs more than it did a generation ago. Statistics Canada data for the 2025/26 school year shows Canadian undergraduate students are paying an average of $7,734 a year in tuition. That compares with an average of $4,400 in the 2006/07 school year, 20 years earlier. The increase of nearly 76 per cent has outpaced inflation, making the financial return on a degree a more pressing question for students and families.Roughly half of graduates have debt when they complete their studies, according to Statistics Canada. Those graduates owe an average of more than $38,000, adding to concerns about whether a university credential will produce enough income to justify its cost. Average earnings data still points to a positive return. Statistics Canada reported that employees aged 25 and older with a bachelor's degree or higher earned an average of $44.67 an hour in 2024.That was about 55 per cent more than workers with a high school diploma or less, who earned an average of $28.82 an hour. Workers with post-secondary education below a bachelor's degree earned an average of $34.38 an hour. Parry said a bachelor's degree continues to distinguish candidates when other qualifications are similar.'If it's apples to apples, down to two candidates, they will nine times out of 10 take the candidate that has the bachelor's degree versus the one who doesn't,' she said. The findings do not suggest that degrees have lost their value. Instead, they show that employers increasingly treat a credential as one part of a broader assessment that includes adaptability, collaboration, technical competence and the ability to contribute from the beginning of a job.The changing expectations are also shaping the debate over Canada's labour market and immigration policy. A Royal Bank of Canada report says the country needs to recruit more international students in fields facing labour shortages and make it easier for those graduates to become permanent residents. The recommendation links higher education, immigration and workforce planning.Students trained in areas with persistent shortages could help employers fill vacancies after graduation, particularly when their programs are closely connected to the skills industries need. Attracting international students is only one part of the challenge. Retaining qualified graduates may require clearer and more accessible routes to permanent residency, allowing them to build careers and settle in Canada after completing their studies. Universities and employers can support that transition through partnerships, placements, co-operative education and applied learning.These arrangements can help students understand how broad knowledge and critical-thinking abilities are used in specific occupations while giving companies earlier access to potential hires. The issue was highlighted in a news roundup published September 14, 2026, at 1:27 p.m. EDT, with an update listed at 2:54 p.m. EDT. Students at the University of British Columbia Vancouver campus were photographed during the first week of classes in Vancouver on Wednesday, September 7, 2022.The photograph was credited to Taehoon Kim of Bloomberg via Getty Images. The roundup also included unrelated reports on Canadian manufacturing sales, federal public servants' office capacity and the search for people missing after a ferry capsized in the Java Sea. For students, the practical message is that a degree remains a valuable foundation, but it is no longer a guarantee of employment.Relevant experience, job-specific skills and a clear connection between coursework and labour-market demand can make the investment more useful.