Professional credentials and certifications are booming, but 'many of them are crap'
Do you have a story about navigating the job market? Reach out to Emma Ockerman here.
In fact, workers without a bachelor's degree can see a 6.8% wage premium for their first job-relevant nondegree credential, according to the Brookings Institution. Those workers might also be poised to benefit from the Pell Grant program opening up to nondegree credentials.
"Somebody with less experience and with a high school degree gets the most value, and yet gets credentials at the lowest rate," Escobari said. "That's where the Pell opportunity — if accompanied with real accountability and data on value — can turn this around."
Read more: How to pay for college without taking out student loans
Higher pay isn't the only upside of nondegree credentials. A report from the Burning Glass Institute noted that some credentials place workers on a better path toward mobility and stability.
A "more holistic assessment shows that roughly 1 in 3 credentials move workers ahead, either through delivering increased wages, driving upward mobility within a current career path, and/or helping workers find a new job," the report said.
Still, "the data also confirms that 69% of credentials offer minimal value."
"Non-degree credentials are meant to be not only mechanisms for people to learn, but mechanisms for people to signal that they have acquired capabilities that their resumes wouldn’t suggest," Burning Glass Institute president Matt Sigelman told Yahoo Finance. "When so few of them work, that means that employers have trouble interpreting them and are less likely to honor them, and workers don't know which ones to choose, and ultimately in many cases decide to skip the whole endeavor."
Certificate in AI?
Wading through an avalanche of possible credentials can be daunting, particularly when competition in the job market is steep, and job seekers feel squeezed between overqualified candidates and the much-hyped AI advances that threaten to both displace new workers and create new types of jobs.
"AI-related credentials appear to be growing at least twice as fast as non-AI credentials, even though it's a small part of the whole credential growth," Escobari said. "Growth is especially strong among people implementing AI, not developing it."
Indeed, LinkedIn's Skills on the Rise list, released on Feb. 24, noted AI-based skills were among the fastest-growing. Mercer's recent Global Talent Trends report for 2026 stressed that while the vast majority of executives expect to slash headcount amid AI advancements in the next two years, most HR managers also felt "difficulty attracting talent with vital digital skills is the top workforce challenge facing businesses in 2026."
But that doesn't mean everyone should race to get a generalized credential with "AI" in the title. Since there are many use cases for the technology, employers may be most interested in how workers can apply AI to their chosen field, or one that's complementary, if the worker risks being displaced due to AI exposure.
"Exposure is not a bad thing," Escobari said. "It's complementarity that makes a difference in what you should be thinking about when you choose to upskill, and what to choose in terms of a resilient job out there."
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at
Sign up for the Mind Your Money newsletter
Read the latest financial and business news from Yahoo Finance
Content Original Link:
" target="_blank">
