UK person here. We've had this problem for a decade or so.

It started in the 90s with companies wanting graduates for roles that really doesn't require a higher education and if you didn't have a degree, your CV/Resume was promptly filed in the bin. So the government made higher education a lot more accessible and pimped it out a lot, much to the expense of both the students and the nation. More Universities, bigger classes, wider spectrum of courses, etc.

Lots of people now have degrees. I mean lots. When students are planning their education, there really isn't a "not go to University" option that doesn't carry the sweeping the streets or factory line worker stigma with it. It's also really quite rare to meet anyone younger than ~35 that hasn't been to university.

We don't quite have the Pedigree problem that, as a foreigner, it appears the US does - i.e. we don't really have a "X University is better than Y" type classification going on (e.g. in TV programme 'Suits', Pearson Hardman will only recruit Harvard educated lawyers. No other College graduates need apply. No idea how 'real' this problem is in the States.) There is some social perception of certain universities, but I'm yet to encounter any restriction being imposed based on which University someone has been to. However, we are seeing the "Must have a 1st Degree with Masters" line appearing on job adverts more and more which is simply just pushing the bar higher, as I imagine is what employers in the US asking for "College X" educated applicants are doing.

All the while we have an education system that is drilling into our young people's heads (and their parents) that University is a must. There's a lot of pressure for young people to get into University.

Degrees are not worth anything like they were before because everyone has one. Nobody "stands out" any more, is all I mean. Everyone has one because of the demand, and the government gave everyone a big boost into Uni. Recently the government had to cut back on the pseudo-subsidy they were giving to the student body, so now we also have a lot of young people who think University is make-or-break, but will also have a large amount of debt (£60,000+) before they've even started working.

Despite all this there seems to be - at least in my experience as one of the few people to have not attended university - a growing number of employers who are starting to ignore the necessity for a degree. Degrees are still regarded as a demonstration of one's character and ability to learn, but it's becoming less and less of a requirement. Perhaps it is just my experience but recruiters, employers, and certainly myself as someone who has recruited many times, are seeing past the qualifications and doing their own assessment (for lack of a better phrase) of prospective employees. I don't mean we're sitting our own exams, I mean we are doing meaningful interviews. We're inviting candidates to work with us for a few hours, and so on. Employers are realising they want to hire intelligent people, and that not everyone has access to a University education, and also that the current education system just doesn't work for everyone. This is what I hope will become of the education and employment system of the future - that a degree an option for students to pursue, but not the only option.

That should be enough rambling.

TL;DR: We've gone full circle in the UK, from requiring that candidates/applicants have degrees, back to assessing candidates for ourselves, and I expect we will again and again in the coming generations.