As states cash in on the potential of non-degree credentials to become a more significant engine for economic mobility, new frameworks are emerging to ensure these innovative programs pass muster. There are over one million credentials offered in the U.S., 60% of which come in the form of badges, licenses, certifications and apprenticeships, according to a 2024 report from Credential Engine. However, at least a third of today’s short-term credentials fail to offer earners any significant wage increase, per Lumina Foundation. “We now know that states are spending about five and a half billion dollars on short-term credentials and looking to spend more,” said Kermit Kaleba, strategy director for credentials of value at Lumina. “How do they know if the investments they’re making are leading to the kinds of labor market outcomes, job outcomes that they want? How do they know employers are finding the talent that they want?”
