In today’s economy — shaped by rapid technological change and shifting industry needs — the traditional four-year degree is no longer the sole pathway to a successful career. Non-degree credentials (NDCs) have emerged as an agile solution, providing a lifeline to individuals and helping employers keep pace with evolving demands by connecting skilled workers to in-demand jobs.

The Skills Gap: A Growing Problem

The half life of skills is shrinking, and traditional degree programs often can’t keep up. By the time students graduate, the skills they acquired may already be outdated. Advances in AI, automation, and digital tools are reshaping industries, eliminating some entry-level roles and redefining others. New graduates are finding fewer opportunities aligned with their education, while employers struggle to hire workers with the competencies they need, especially in high-demand sectors.

The resulting “skills gap” is less a pipeline problem and more a matter of alignment. Our systems were not built to deliver timely, targeted upskilling at scale. States, like Indiana, are recognizing the urgency of reskilling and upskiling their workforce quickly to stay competitive. This is exactly where NDCs offer a powerful intervention.

Non–Degree Credentials: An Agile Solution

Employers and governments alike are rethinking degree requirements. Many public sector jobs now prioritize demonstrated skills and experience over formal degrees, opening doors for a wider talent pool.

NDCs make this transition possible by providing learners with faster, more affordable ways to gain relevant skills — and employers with clear signals of job readiness. High-quality credentials delivered through community colleges, employer partnerships, bootcamps, or industry associations can offer:

• Labor market alignment — curricula designed around specific occupational competencies
• Flexibility and speed — pathways that support mid-career learners and nontraditional students, allowing workers to pivot or reenter the workforce quickly
• Affordability and accessibility — expanded opportunities for learners historically underrepresented in higher education

The rise of NDCs signals a fundamental shift in how we think about career preparation. They are not a replacement for degrees, but part of a broader shift toward lifelong learning. Instead of relying on a single “one-and-done” degree, today’s workers must continuously adapt, stacking new skills to stay competitive.

Research from Strada Education Foundation shows that college graduates who pair a degree with a non-degree credential often report higher satisfaction with their education and are more likely to view themselves as attractive candidates. This "stackable" approach allows individuals to build specialized, portable skills that increase their career mobility and long-term value in the labor market.

Higher education and policymakers tout NDCs as a powerful and essential tool for navigating this ever-changing landscape, but its crucial that the right learning is taking place.

Quality Assurance and Transparency: The Path to Success

For NDCs to deliver on their potential, quality assurance is essential. Policymakers, employers, and learners need clear signals to distinguish credentials of value from those that don’t deliver meaningful outcomes. Transparent systems that identify which credentials lead to good jobs will build trust and help scale what works.

Effective NDCs do more than bridge the gap between education and employment—they redefine it so the solution is part of a larger vision that brings together educators, employers, policymakers, and data stewards. To stay true to its promise of opportunity and adaptability, this vision must be backed by trustworthy data that validates success, surfaces gaps, and ensures the ecosystem grows stronger over time.