SALT LAKE CITY, Dec. 09, 2025 (GLOBE NEWSWIRE) — WGU today released its inaugural Workforce Decoded Report, which reveals employers’ perspectives on workforce development, hiring practices and emerging talent needs amid a period of widescale business transformation. The report highlights a marked shift in how employers are evaluating and validating candidate skills as AI fundamentally reshapes the workforce.
“We are seeing a rapid evolution in the workforce needs of employers, and with that brings changing expectations for what skillsets candidates must bring to the table,” said Scott Pulsipher, President of WGU. “With nearly ninety percent of employers indicating that non-degree certificates are valuable for signaling job readiness, this report validates that higher education’s role in preparing the workforce of tomorrow must adapt to meet hiring where it is today – taking into account the many paths to unlocking talent.”
The WGU Workforce Decoded Report underscores that the perceived value of degrees rises in tandem with employers’ confidence in workforce preparedness. Employers are not trading one signal for another; they are building a wider readiness portfolio where degrees, credentials, and competencies collectively strengthen hiring decisions to align with the business needs of the future.
Certificates and Skills Gaining on Degrees
Employers are broadening how they evaluate candidate readiness beyond simply having a diploma. The value of a college degree remains broadly significant, but indicators of success are expanding. Employers are increasingly embracing additional signals of proven skills like hands-on experience and short-term credentials to assess candidate aptitude.
- 86% of employers see non-degree certificates as valuable for indicating job readiness.
- 78% of employers say work experience is equal to or more valuable than a degree.
- 68% of employers view degrees as important, with IT & technology and finance & professional services placing the highest importance compared to other industries.
- Only 37% of employers say higher ed institutions are preparing students with the skills needed to be successful in the workforce.
With more hiring decisions hinging on proof of skills and relevancy, educational institutions must adapt their programs to align more closely with changing employer demands to ensure graduates are well-positioned for employment.
AI Influencing the Valuation and Validation of Skills
As AI is integrated into more industries, a renewed emphasis is being placed on soft skills during the hiring process while a growing number of employers are also evaluating technical skills surrounding AI tools and other emerging technologies.
- Employers identify critical thinking and problem solving, time management and adaptability/resilience as the three most critically important skills for job success in the next 12 months.
- 50% of employers are assessing candidates’ AI fluency through comfort with AI tools, AI skills & certs and an ability to integrate AI into their work.
- 52% of employers assess AI competency through technical or skills-based assessment and/or on-the-project evaluations.
For entry-level candidates (one year of experience or less) in particular, the ability to demonstrate job-relevant skills during the hiring process is a differentiator as hiring decisions trend toward evidence-based skills verification. This places greater emphasis on work experience, internships and apprenticeships, as well as assessments and trial-based hiring as markers of success. Institutions that align learning outcomes with workforce expectations will be more relevant in preparing learners for this new hiring landscape.
To view the full findings from WGU’s Workforce Decoded Report, visit here.
About WGU’s Workforce Decoded Report
WGU’s Workforce Decoded Report is based on findings from a national survey conducted by Centiment on behalf of WGU between September 30, 2025 – October 15, 2025. A total of 3,147 U.S.-based respondents completed the online survey, and participants represented organizations of varying sizes across a range of industries and regions.
About WGU
WGU is transforming higher education to be more student-centric, affordable, accessible and relevant to the workforce. Established as a nonprofit in 1997 by 19 visionary U.S. governors, WGU creates life-changing pathways to opportunity for those underserved by traditional institutions — working adults, historically underrepresented communities and a diverse, growing number of learners looking for a flexible, online model. WGU’s competency-based education model allows students to demonstrate mastery as they progress through programs at their own pace. Accredited by the Northwest Commission on Colleges and Universities, WGU operates in all 50 states and offers more than 112 degree and certificate programs. WGU serves more than 193,000 students nationwide, with more than 410,000 alumni and has awarded more than 460,000 degrees. Learn more at wgu.edu.
- WGU Workforce Decoded Report Reveals Employers Rewriting Hiring Playbooks as Business Needs Shift