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In theory, professional certifications ought to be a key element in addressing the skills gap in the job market - yet in practice, certifications still fall short of their potential. How do employers use these credentials in their hiring process today? What would make certifications more valuable in the job market? In this report, we seek to bring clarity to the debate by using job posting data to examine the market value of industry certifications. Using our database of more than 700 million historical job postings, we are able to track how often employers explicitly ask for certifications, and in what context. Our hope is that this study answers some key questions about credentials: What does the demand for certifications look like in the real world of the market today? What role do certifications play in careers? Where have certifications gained traction with employers and where have they not? Where are the opportunities to develop new certifications that prove successful in resolving the skills gap?

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Industry-recognized credentials allow students to validate the knowledge and skills required for success in a specific occupation or industry. However, not all credentials are created or valued equally in the workforce; in fact, some credentials lead students to dead-end, low-wage jobs. As states, educators, students and families consider pathways to various careers, they should consider the long-term outcomes related to wages and potential for employment afforded by each available career pathway and associated credential(s). All stakeholders must play a role in improving alignment to ensure students have opportunities to be successful. State agencies, policymakers, employers, educators, credentialing entities and families can improve student career readiness by identifying, promoting and reporting valued industry-recognized credentials. Approaching this challenge in silos may result in piecemeal improvements in student outcomes. To see the greatest impact, states and stakeholders must undertake this work through strategic partnerships and collaboration. This report examines the impact of credential attainment on long-term student outcomes in Florida, Indiana and Kentucky-three states that collect rich, student-level data. Specifically, the report analyzes the credentials students earn in high school and their impact on students' high school completion, community college enrollment and completion, and wages.

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