Career and Technical Education: Industry-recognized Credentials Matter

 Full report

States offer a wide range of career and technical education (CTE) programs and  credentials intended to prepare these students for success after high school or  higher education, but how effective are these programs and the credentials that students are earning? 

U.S. employers are struggling to find qualified applicants across a range of career  sectors. In 12 career areas—including healthcare, computers and mathematics—demand  for workers exceeded available supply by a total of 4.4 million job openings in 2016.  This gap threatens our economy, undermines the innovation and competitiveness in  many of our leading industries and will only worsen in a fast-changing market where  jobs increasingly blend capabilities from different domains.   

Industry-recognized credentials help address this skills gap by conveying a student’s  career readiness because they validate the knowledge and skills required for success in  a given occupation or industry. In fact, full-time employees with an industry credential  earn more than their counterparts without one, and in some cases, the salaries of non- degree credential holders’ were found to be similar to workers with college degrees.   This year, 3.6 million American students will graduate high school.  Whether they enter the workforce immediately or pursue postsecondary  education they will all eventually find a job market where an estimated 65% of positions demand postsecondary credentials.     

The 2018 reauthorization of the $1.2 billion Carl D. Perkins Career and Technical  Education Act offers states an ideal opportunity to reassess the impact of their  programs and make credentials a metric for success.   This report serves as a jumping off point for states to begin conversations about which  credentials are most valuable and lead students to good careers. These findings provide a  basis for practical changes in credential programs that can improve the chances of job  market success for many young people.  Right now, too many young people are missing the chance to graduate from  high school ready to succeed in college and in careers that can support a family.     

Credentials Matter  is a first-of-its-kind analysis of how the  credentials students earn align with employer demand.  States do not have consistent definitions  for what constitutes an industry-recognized  credential—even though U.S. high school  students earn hundreds of thousands of  credentials each year.   Just over half of all states (28) collect  quantitative data on the attainment  of  credentials.  Many credentials are not explicitly  requested in employer job listings, despite  the fact that the credentials may be  required or desired for the position. Of the 24 states where data were available  and analyzed, no state is highly aligned in  terms of supply for credentials earned by  high school students and the demand for  those credentials in the job market.