Linux is the #1 operating system for hosting real world production application. Most of the real world Java application in big IBs are hosted on RedHat Linux. This makes Linux an extremely important skill for getting a Job. Along with any programming language e.g. Java or C++, you must have good command on Linux and SQL to get a programming job. Btw, Linux is not just limited for development job but it is even more important for support roles and system admin jobs. If you are working in production support then an excellent knowledge of Linux is expected from you, which includes knowing fundamental of Linux e.g. how Linux OS works?, what is kernel or shell?, or what is init process?, as well as good knowledge of various Linux commands to perform day-to-day job, and troubleshoot any production issues.
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