New-collar jobs explained: What they are and skills you need

As digital transformation accelerates across industries, a fundamental shift is reshaping how companies hire and evaluate talent. New-collar roles are emerging as the answer to modern workforce challenges, with skills and practical experience taking precedence over traditional qualifications.

According to Michael Page Singapore 2025 Talent Trends Report, ‘required skills unavailable’ now ranks as the third most common hiring challenge, pushing employers to look beyond formal credentials and embrace recruiting practices that prioritise skills ahead of certifications.

The industries leading this transformation are clear: technology, fintech, logistics and supply chain, renewable energy, and healthcare technology are driving new-collar hiring initiatives. Meanwhile, the most in-demand skills reflect our digital economy's priorities – cloud computing, cybersecurity, data analytics, AI/ML application, and communication and adaptability top the list.

“This shift represents more than a temporary response to talent shortages; it’s a permanent reimagining of how we match human potential with economic opportunity," explains Nilay Khandelwal, Senior Managing Director, Michael Page Singapore and India.

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The skills gap crisis: Why traditional education isn’t meeting job market needs

President Tharman Shanmugaratnam recently lamented that in the modern world, there is an increase of mismatch of skills and aspirations when speaking at the World Economic Forum.

He believes that this is partially due to how tertiary education has expanded internationally almost without variation towards one particular model of education – a highly academic one. This type of education was previously applied to a very narrow cohort of students at a time when university education was rare.

“That’s also created a hierarchy where academic skills are ranked above technical skills, or the skills you acquire through experience.”

“That’s at the heart of the mismatch of what people are trained for, and what the job market and employers want,” he said.

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Skills-first hiring: Why employers are making the switch

He’ll be heartened to know that within the job and hiring market, shifts have already begun. Employers have started to unlock the potential of millions of new-collar workers who were previously locked out of promising job opportunities and careers, creating access to a more diverse talent pool.

This was due to too many companies looking to hire workers with degrees by default, even for jobs that don’t require that level of education.

According to research referenced by Harvard Business Review, this trend began decades ago but spiked in 2007 to 2010, with job postings requiring a bachelor’s degree increasing by 10%.

While that number has fluctuated since, this degree-first mentality by some employers, rather than skills-first, has deprived them of talent in an increasingly tight hiring environment.

In fact, a 2017 report by Harvard Business School and Accenture, Dismissed by Degrees, found that for jobs requiring ‘middle skills’ (some education or training beyond secondary school), there was no boost of productivity when performed by degree holders.

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What are new-collar jobs and why employers are hiring for them

A pivot towards skills-first hiring has emerged in the form of new-collar jobs, which can range from a wide field of industries and roles, such as cloud administrator, cybersecurity architect, database administrator, digital marketer, field service engineer, graphic designer, and IT support specialist.

This list, far from being exhaustive, scrapes just the surface of jobs that basically require a combination of technical skills without the need for a specialised degree.

Related: How to start a career in tech with no experience

Khandelwal, who elaborated that these jobs have emerged in response to rapid technological advancements, automation, and industry shifts, says, “Employers are realising that formal education is not always the best indicator of capability – what truly matters is whether a candidate has the right skills and mindset to perform in a fast-evolving workplace.”

“Industries like tech, fintech, and advanced manufacturing are leading the shift.”

“Healthcare, particularly in areas like medical technology and telehealth, is increasingly hiring based on skills rather than degrees,” he added.

New-collar vs blue-collar vs white-collar: Key differences explained

The key difference between new-collar and traditional roles is that qualifications are no longer the primary focus – demonstrated skills and hands-on experience take precedence.

Unlike blue-collar jobs, which traditionally involve manual labour, or white-collar jobs that require formal education, new-collar jobs sit at the intersection, blending digital proficiency with practical application.

Global employment trends: Where new-collar jobs are growing fastest

Nilay believes that from an Asia-Pacific perspective, Singapore and Australia employers are actually leaders in skills-first hiring, driven by government-backed upskilling initiatives.

India’s booming tech and outsourcing sector is embracing non-degree talent, while Japan and South Korea remain more traditional, though shifting in AI and cybersecurity.

He added: “Industries like tech, fintech, and advanced manufacturing are leading the shift, while regulated fields like finance and healthcare are lagging.”

“Across all regions, digital transformation and talent shortages are forcing companies to rethink hiring –skills now matter more than degrees.”

Career benefits: Why new-collar jobs offer better growth opportunities

New-collar workers often have faster career progression than traditional roles, as companies prioritise skills and results over tenure.

In addition, these roles provide international mobility – for example, a cloud engineer can work remotely or relocate to global tech hubs.

Many organisations now offer specialist career pathways where new-collar workers can advance based on expertise rather than degrees.

Future of work: Industries driving new-collar job demand

The demand for new-collar talent will continue to accelerate, particularly in AI, automation, cybersecurity, and green energy, Nilay believes.

“We are preparing for this shift by expanding our partnerships with industry bodies, refining our skills-first hiring methodologies, and guiding businesses through this transition.”

“New-collar roles will reshape the workforce permanently, and are not a response to short-term skills gaps.”

“This is a permanent shift. While the talent shortage has accelerated its adoption, the long-term trend is clear – automation, AI, and digital transformation are fundamentally changing job requirements.”

Companies that fail to embrace skills-based recruitment will struggle to attract and retain talent in the future, he added.

How to transition to new-collar jobs: Essential skills and certifications

For those looking to make career-switches to these new-collar jobs, what are the skillsets that white- and blue-collar workers will need to reskill and upskill for to become new-collar workers?

“They need to first identify which skills are transferable from your current role,” Nilay said.

“Then, invest in industry-recognised certifications – for example, AWS for cloud computing, Google Career Certificates for IT, or a cybersecurity qualification such as CISSP.”

“Practical experience is key, so consider freelance projects, bootcamps, or apprenticeships to build a strong portfolio.”

“Lastly, networking is also crucial – connect with industry professionals and leverage platforms like LinkedIn to showcase your expertise.”

Related: 7 crucial skills to adapt to the new future of work

The next 5-10 years: New-collar career development trends

Skills are the new currency — and embracing them is key to future workforce resilience. Here are several major trends will shape recruitment and career development in the coming decade:

AI & automation integration: Roles will increasingly require a hybrid skill set, blending human expertise, soft skills, and automation tools.

Rise of micro-credentials: Organisations will place greater value on certifications from Coursera, Udacity, and Google Career Certificates over traditional degrees.

Continuous learning mindset: Career progression will rely on upskilling and adaptability rather than rigid career ladders.

Flexible career pathways: Employees will move across industries more fluidly, based on skills applicability rather than linear job titles.

This article was done in collaboration with Careerscompass by MyCareersFuture.

Ready to embrace the skills-first future? Whether you're looking to transition into a new-collar role or transform your hiring strategy, we're here to help.

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