Software / Development jobs have many different roles. If you understand that, then you can realize that depending on the role that you want to be you can avoid algorithms all together.
The reason why they ask algorithm questions during an interview is to figure out how your logical / analytical problem solving skills are.
Here is an example. If you are asked a question "there are three light bulbs in a room and outside the room there are three light switches. you may enter the room only once. how can you tell which light bulb goes to which switch?". These types of questions are only asked to test your ability to solve problems, because in software engineering there are always problems that require you to think outside the box. If you can answer these questions then great you can be a great software developer for most normal tasks.
If the interviewer asks you a question like "Take this recursive tree function that runs in time O(n^3) and optimize it to run O(n^lgn)". Then they are giving you an option right then and there to realize that maybe the position would not be any fun for you. It is not an issue of "can you do it or not" it's an issue of would you like solving these types of problems every day.
Complex algorithm design typically does not happen in most job situations. If you get an interview that would never have the need to optimize on this type of level, and the interviewer still asks you to solve that kind of problem, then you are most likely looking at someone who would rather work with people who went to the same university as they did. In that scenario you are most likely better off thanking them for their time and finding something else.
To answer your question though with everything above in mind. Algorithms are not required for the job of software developer. They are required for very complex and directed tasks that require specific types of optimization. Unfortunately people tend to use it as a way to weed out those who have not had a formal education.