Why are industry credentials important?

Oklahoma has 1,670,046 jobs by industry, and the number is projected to grow 7.8 percent to 1,946,040 by 2025. This aggressive growth projection reinforces the need for all Oklahomans to have the skills and knowledge necessary to be productively engaged in the workplace. The Oklahoma Department of Career and Technology Education provides programs and services that support Oklahoma’s job growth for each of the key business ecosystems identified by the Oklahoma Department of Commerce.

The specific needs of the current workforce and the workforce projected to exist in 2025 indicate a majority of workers will need certificates, credentials or associate degrees to maintain the growth of Oklahoma’s economy. Business and industry require and will continue to require a qualified workforce.

What is a credential?

An education- and work-related credential, which could include a license or certificate, can be defined as a verification of an individual’s qualification or competence issued by a third party with the relevant authority to issue such credentials (U.S. Department of Labor, 2010).

To ensure an educated and skilled workforce, many industries and educational entities have successfully developed and implemented industry-recognized credentials to connect individuals to the skills they need to enter into and advance in jobs. Many credentials are stackable, meaning they can build on previous competencies and skills through an individual’s lifetime.

Credential Types:

Certificate

  • Awarded upon the successful completion of a brief course of study, usually one year or less but at times longer.
  • Upon completion of a course of study, a certificate does not require any further action to retain.

Certification

  • Awarded by a professional organization or other nongovernmental body.
  • Is not legally required to work in an occupation.
  • Requires demonstrating competency to do a specific job, often through an examination process.

License

  • Awarded by a governmental licensing agency.
  • Gives legal authority to work in an occupation.
  • Requires meeting predetermined criteria, such as having a degree or passing a state-administered exam.

Degree

  • An award or title conferred upon an individual for the completion of a program or courses of study over multiple years at postsecondary education institutions.

Through ODCTE leadership, agency operations, dissemination of best practices and multiple delivery arms, Oklahoma CareerTech strives to increase student educational attainment of industry credentials. (In FY16, Oklahoma students earned 15,152 industry credentials.)

The value of credentials

It is imperative that the educational process focus on successful outcomes that provide individuals with the skills and abilities to enter the workforce and/ or enter postsecondary education. For example, completion of industry-recognized certifications and credentials enables individuals to work in highwage, high-demand occupations. The certifications/ credentials that students receive are an essential component to decreasing the educational gap that blocks a more vibrant Oklahoma economy. Oklahoma’s future hinges on business and industry’s ability to successfully compete in a global economy. A highly skilled workforce is essential for success in today’s challenging business environment.

Socioeconomic mobility

To further demonstrate the importance of credentials, the 2016 national data from the U.S. Bureau of Labor Statistics revealed employed people were more likely to hold an active certification or license (25.0 percent) than unemployed people (12.5 percent) or those who were not in the labor force (6.0 percent). People who held certifications or licenses also had a lower unemployment rate than those who did not (2.5 percent versus 5.6 percent, respectively). Workers with certifications or licenses also earned 35.0 percent more than those who did not hold such credentials ($1,032 versus $765 respectively).

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