Skills-Based Credentials Are Reshaping Higher Education

How Institutions Can Support Career-Aligned Learning and Student Success

Higher education is evolving. Traditional degrees alone are no longer enough. Today’s learners and employers are increasingly seeking proof of skills—not just coursework completed. As a result, skills-based credentials are gaining momentum, offering a career-aligned alternative that helps bridge the gap between academic programs and workforce expectations.

Skills-based credentials—shorter, focused, and verifiable—help learners showcase job-ready skills in a way that traditional degrees often can’t. For institutions, offering certificates and career-relevant learning pathways is a powerful strategy to improve student outcomes, increase retention, and stay competitive in a changing education landscape.

So, what’s fueling the rise of these credentials? The infographic below illustrates the market growth, shifting student expectations, and why now is the time for institutions to act.

The Market Is Booming

The global market for alternative credentials is projected to grow by $1.84 billion between 2025 and 2029, highlighting a seismic shift in how learners pursue education and how employers evaluate talent.

At the same time, 36.8 million Americans remain stuck in the “some college, no credential” category—leaving them with limited options in a skills-based economy. But the desire to return is strong: re-enrollment jumped 9.1% from 2022 to 2023. These learners want more than just a path back to school—they want pathways to better careers.

The takeaway? Institutions that offer skills-based certificates and industry-aligned learning opportunities will be better positioned to support both returning learners and recent graduates.

Why Students Want Skills-Based Credentials

Students are clear: they want to leave school with more than just a diploma. They want verified, career-relevant skills that help them stand out in the job market.

• 83% of students say skills-based learning should be a priority in higher education.
• 90% believe earning an industry-recognized credential will give them a competitive edge.
• 74% are more likely to enroll in a degree program that includes a certificate or skills validation component.

For institutions, embedding skills-based credentials into existing degree programs isn’t just smart—it’s becoming expected.

The Rise of Skills-Based Hiring

Employers are reevaluating how they assess talent—and credentials that verify real-world skills are at the top of the list.

• 72% of employers are more likely to hire someone with a microcredential.
• 77% are actively exploring or already using skills-based hiring.
• 80% see stackable, career-aligned credentials as a key part of supporting lifelong learning.

In short, institutions that provide ways for students to demonstrate what they can do—not just what they studied—will graduate more career-ready learners.

How Institutions Can Take Action

Higher education has a unique opportunity to lead this shift by embracing skills-based credentials now. By integrating them into academic programs, institutions can:

• Enhance student retention by offering career-relevant learning opportunities.
• Improve graduate employability by aligning credentials with industry needs
• Expand access to education for learners seeking short-term, workforce-aligned programs.

Parchment Certificate Services Makes It Easy

Parchment empowers institutions to issue secure, skills-based credentials that help learners showcase their achievements.

Book a demo today to see how Parchment Certificate Services helps institutions issue career-focused certificates that align with workforce needs and student expectations.

There’s always more to learn.