Nearly 9 in 10 nondegree certificates for skilled trades have no positive impact on wages, according to a report that finds U.S. job preparation programs lagging behind workforce needs. Here’s what you need to know about the credential effectiveness study:
The study’s shocking findings
Conservative think tank and nonprofit reveal credential failure:
- Only 12% of short-term certificates produced wage gains of at least 10%
- Mere 18% of credential earners likely to get any salary bump at all
- Many paying for tuition without any payoff from programs
- Hardly any credential earners moved up to higher jobs
The research methodology
Comprehensive analysis of certificate programs nationwide:
- American Enterprise Institute and Burning Glass Institute conducted study
- Analyzed 23,444 nondegree certificate programs from over 2,000 institutions
- Found stark differences between disconnected education and effective programs
- Study released this week with detailed workforce impact data
The lead researcher’s concerns
Former Education Department official warns of navigation challenges:
- Mark Schneider, AEI nonresident senior fellow, led research
- Says findings highlight challenges navigating “wild west” of 1.1 million credentials
- Former commissioner of Education Department’s National Center for Education Statistics
- “Usual cues to quality” not sufficient to help learners find valuable credentials
The successful credential programs
Top 10% of programs show dramatic impact:
- Added nearly $5,000 to average earner’s wages a year later
- Increased likelihood of promotion seventeenfold
- Boosted chances of successful career switch sixfold
- Demonstrate stark contrast with majority of ineffective programs
The workforce trend context
High school graduates increasingly choosing trades over college:
- Several workforce experts noted trend toward skilled trades
- Young people embracing trades over pricey four-year college programs
- Georgetown University study shows third of job openings through 2031 need credentials but no college degree
- Trend attributed to dwindling good-paying jobs requiring college degree
The enrollment surge reasons
Multiple factors driving trade school popularity:
- Growing sense college degree doesn’t justify school debt mountains
- Surging enrollments in apprenticeships and trade schools
- Increased participation in Pell Grant workforce training programs
- Students seeking alternatives to traditional four-year education
Industry expert criticism
Apprenticeship leader says institutions “cashing in” on trend:
- Paul Iaccarino oversees large unionized electrician program through USWU Local 363
- Says many institutions staying “disconnected from the labor market”
- “Many certificate programs built to generate enrollment, not careers”
- Programs lack employer support and offer minimal practical experience
The effective training model
Successful programs offer different approach:
- Iaccarino’s program offers debt-free, paid training
- Places students directly into careers earning over $80,000 yearly
- Includes pensions, health care, and zero student loans
- Only Labor Department registered programs guarantee stable careers
Technology sector perspective
Cybersecurity CEO explains employer viewpoint:
- Chase Norlin of Arizona-based Transmosis says certificates show “baseline understanding”
- Many credential programs haven’t addressed tech industry needs
- Industry needs theoretical learning blended with practical knowledge
- “Real-world work experience” critical missing link for job candidates
The specific success stories
Two trades show positive credential impact:
- Electricians earn average yearly salary of $62,350
- Can boost wages by $3,400 annually with National Center for Construction Education and Research credential
- Plumbers, pipefitters, steamfitters earn average $62,350 annually
- Can increase by $1,900 with American Welding Society plumbing credential
The policy recommendations
Report calls for funding reform:
- Public funding for credential programs “must be tied to empirical evidence of labor market value”
- Need to protect learners and taxpayers from wasting time
- Matt Sigelman of Burning Glass Institute highlighted successful programs
- “Return on investment for vast majority of credentials sure to be negative”
Read more:
• Report finds 88% of skilled trade credentials have no impact on wages
This article is written with the assistance of generative artificial intelligence based solely on Washington Times original reporting and wire services. For more information, please read our AI policy or contact Ann Wog, Managing Editor for Digital, at awog@washingtontimes.com
The Washington Times AI Ethics Newsroom Committee can be reached at aispotlight@washingtontimes.com.
