SHEEO launched the Digital Credentials in Post-Secondary Education, in collaboration with Reach University and the Indiana Commission for Higher Education, to advance the integration of measurable skills into digital credentials. This project aims to promote skills-based credentialing for high-demand occupations, thereby aligning the labor force participation gap between potential workers and employers seeking talent. As a leader in the digital credential movement, Indiana served as a single-state pilot to explore the connection between higher education and the digital credentials ecosystem. The lessons from this work will help to expand efforts nationally to other states and foster a cohesive and scalable approach to skills-based credentialing across the nation.
Background Information
This project seeks to align higher education institutions with the broader digital credential ecosystem, enhancing the documentation and credentialing of measurable skills for high-demand occupations, aligning with state priorities for economic and workforce development by addressing the labor force participation gap between potential workers and employers seeking talent. A significant factor contributing to the gap between potential workers and employers seeking talent is the phenomena of “missing workers” — individuals who are not actively participating in the labor force despite being of working age. The COVID-19 pandemic exacerbated the existing gap with millions of workers leaving the workforce due to factors including health concerns, caregiving responsibilities, and a re-evaluation of work-life balance.
The growing population of “some college, no degree” adults between the ages of 18 and 64 who were previously enrolled in a higher education institution but left before receiving a degree or long-term certificate demonstrate another pressing need. Between January 2021 and July 2022, approximately 2.3 million students stopped out of college, marking a 2.9 percent increase from the previous year. It is estimated that around 6.5 million people are estimated to have stranded credits, resulting in $15 billion in debt owed to colleges and universities and experience financial burdens and limited job opportunities.
Digital credentials offer a viable solution to both of these challenges by offering a flexible, verifiable, and accessible means for individuals to demonstrate their skills and competencies. By bridging the gap between traditional education and evolving workforce needs, it enables learners to gain recognition for their achievements and facilitating their re-entry into the labor market. Digital credentials support economic empowerment, enhance the diversity of the talent pipeline, and improve labor outcomes across various state contexts.
Key Objectives
Higher education institutions are increasingly interested in documenting and credentialing measurable skills for high-demand occupations. This initiative aims to accelerate skills-based credentialing by integrating data tools with the Learning and Employment Record (LER) and digital credential ecosystems. The project will also develop a design template for other states to consider the development and implementation of a digital educational and professional wallet.
