The following is from Oregon Workforce Partnership:
At OWP, we’ve long championed alternative learning and credentialing beyond the traditional four-year degree. From certificates to apprenticeships to short-term trainings, these programs can open doors to opportunity and help workers adapt to a changing economy. But, in exchange for time and money spent, it’s essential that credentials deliver value by boosting wages, advancing careers, and uplifting workers who are striving for better jobs. A new report from the Burning Glass Institute highlights just how uneven this landscape has become.
What the Report Found
The U.S. credential marketplace has exploded, with more than 1.1 million credentials now on offer. But the report shows that the return on investment is far from consistent:
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Most credentials don’t pay off. Only 12% deliver significant wage gains, and just 18% of earners see wage increases beyond what similar peers achieve.
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The best programs can be life-changing. The top 10% of credentials add nearly $5,000 in annual wages, make successful career switches six times more likely, and increase promotion chances 17-fold compared to the bottom tier.
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Equity gains are possible. Black and Hispanic women who complete high-value credentials see 10%+ wage increases, helping close earnings gaps with peers.
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Reputation isn’t everything. Well-known universities and platforms don’t always deliver; some of their programs fail to boost wages, while certain lesser-known providers demonstrate strong outcomes.
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Career advancement varies. Credentials are better at opening new doors than at helping workers move up where they are. On average, wage gains within a worker’s current field are modest, though top credentials do improve the odds.