Merit in the shadows: As degrees lose their lustre, why are skills not enough without a city pin code?

A new analysis from the Federal Reserve Bank of New York reveals that not all college degrees promise strong financial returns.

There was a time when a college degree was the primary currency of employability—a paper crown worn by every job seeker hoping to ascend the corporate ladder. Today, however, that throne is crumbling.In a skill-drivenjob market, credentials alone no longer guarantee a golden ticket to dream jobs. According to recent data from Indeed, a job recruitment platform, Indian recruiters now place abilities above alma maters. The message is clear: your résumé is not about where you studied, but what you can bring to the table.Yet, an unsettling truth strikes at the heart of the Indian job market: why are students from metropolitan hubs reaping the rewards, while the talent of Tier 2 and Tier 3 candidates is swept under the rug? This troubling dichotomy sends a loud and clear message—we may be hiring for skills, but we are still rewarding privilege. Students in metros have access to elite internships, high-speed networks, polished mentors, and the soft skills that come from early exposure to urban professional cultures.For many in smaller towns, that kind of environment remains a distant dream.The reality is that the playing field has never been level. While the rules of the game have changed, the pitch remains tilted. The skills-first narrative may be the new gospel of hiring, but it is still being filtered through an old lens—one that continues to equate opportunity with geography.

The Geography of opportunity: Urban monopoly of jobs

Does geography decide talent? Well, the hypothesis is firmly established in the job market. A National Association of Software and Service Companies (NASSCOM’s report debunks the prevailing myth with facts. It starkly highlights the brimming paradox by unearthing the fact that over 60% of Tier 1 city graduates are considered “job ready”, only 35% of students from Tier 2 and 3 cities meeting the same benchmark.The reason isn’t intellectual capacity—it’s infrastructure. Students in Tier 1 cities benefit from a scaffolding of early exposure and guided training. They begin their placement preparation as early as their second year, armed with mock interviews, company-specific aptitude coaching, and industry-aligned workshops. They navigate their career paths with roadmaps and mentors, not just with textbooks and luck.In contrast, their Tier 2 and Tier 3 peers are often left to fend for themselves in an outdated academic loop, where theory trumps application and placement is a postscript, not a priority. These students frequently lack access to structured guidance, live-project experiences, and the real-time tools that modern jobs demand.

Value of degrees is withering off, but access isn’t

Equality has translated into being a synonym of illusion in the current job market. While numerous online educational platforms such as LinkedIn Learning, GitHub, and Coursera promise democratised knowledge, the uptake remains uneven. Awareness, motivation, and internet access are no longer the only barriers – what is missing is a conducive ground that cultivates competitive readiness.Students in metros don’t just imbibe skills, they learn how to signal them effectively. They are well-skilled in creating impressive resumes to personal branding, they are being taught the invisible grammar of employability. Their portfolios echo their professional candidature, stacked with the requisite keywords and trending skills.On the other hand, many Tier ⅔ city students, despite having equal potential, end up showcasing nothing more than academic transcripts, losing value in a world that demands practical knowledge.They treat placement like a professional campaign, not a final-year afterthought.

A structural failure, not a talent deficit

The secret to lessen the employability gap to mere student initiative is to miss the forest for the trees. What Tier 2 and 3 cities are deficient in is not ambition but access. Skill building demands mentors, exposire, and feedback loops- not just online modules.Government initiatives and EdTech promises often celebrate upskilling as panacea, but unless these interventions are embedded into the institutional framework of smaller cities, the gulf will only widen. Employers, too, must diversify their campus outreach and redefine hiring pipelines thay don’t just orbit IITs or top NITs.

Fix the funnel, not the fish

In a skills-first era, the problem isn’t that degrees are obsolete. It’s that access is still elitist. When students in smaller cities are handed the same compass and map, they, too can navigate the terrain of modern employment with equal precision. Until then, the talent of Bharat will remain underutilised—not because it is underqualified, but because it is underserved.In a job market ruled by the skills, the problem is not that degrees are obsolete. It is the access is elitist. When students hailing from smaller cities are handed the same compass and map, they too can navigate the terrain of modern employment with equal precision. Until then, the talent of India will remain untapped- not because it is underqualified, but because it is underserved. It is high time that instead of sidelining the students, the fractured system is mended.