The shocking truth about trade school certificates: 88% don’t boost wages

Nearly 9 in 10 nondegree certificates for skilled trades have no positive impact on wages, according to a report that finds U.S. job preparation programs lagging behind workforce needs. Here’s what you need to know about the credential effectiveness study:

The study’s shocking findings

Conservative think tank and nonprofit reveal credential failure:

• Only 12% of short-term certificates produced wage gains of at least 10%
• Mere 18% of credential earners likely to get any salary bump at all
• Many paying for tuition without any payoff from programs
• Hardly any credential earners moved up to higher jobs

The research methodology

Comprehensive analysis of certificate programs nationwide:

• American Enterprise Institute and Burning Glass Institute conducted study
• Analyzed 23,444 nondegree certificate programs from over 2,000 institutions
• Found stark differences between disconnected education and effective programs
• Study released this week with detailed workforce impact data

The lead researcher’s concerns

Former Education Department official warns of navigation challenges:

• Mark Schneider, AEI nonresident senior fellow, led research
• Says findings highlight challenges navigating “wild west” of 1.1 million credentials
• Former commissioner of Education Department’s National Center for Education Statistics
• “Usual cues to quality” not sufficient to help learners find valuable credentials

The successful credential programs

Top 10% of programs show dramatic impact:

• Added nearly $5,000 to average earner’s wages a year later
• Increased likelihood of promotion seventeenfold
• Boosted chances of successful career switch sixfold
• Demonstrate stark contrast with majority of ineffective programs

The workforce trend context

High school graduates increasingly choosing trades over college:

• Several workforce experts noted trend toward skilled trades
• Young people embracing trades over pricey four-year college programs
• Georgetown University study shows third of job openings through 2031 need credentials but no college degree
• Trend attributed to dwindling good-paying jobs requiring college degree

The enrollment surge reasons

Multiple factors driving trade school popularity:

• Growing sense college degree doesn’t justify school debt mountains
• Surging enrollments in apprenticeships and trade schools
• Increased participation in Pell Grant workforce training programs
• Students seeking alternatives to traditional four-year education

Industry expert criticism

Apprenticeship leader says institutions “cashing in” on trend:

• Paul Iaccarino oversees large unionized electrician program through USWU Local 363
• Says many institutions staying “disconnected from the labor market”
• “Many certificate programs built to generate enrollment, not careers”
• Programs lack employer support and offer minimal practical experience

The effective training model

Successful programs offer different approach:

• Iaccarino’s program offers debt-free, paid training
• Places students directly into careers earning over $80,000 yearly
• Includes pensions, health care, and zero student loans
• Only Labor Department registered programs guarantee stable careers

Technology sector perspective

Cybersecurity CEO explains employer viewpoint:

• Chase Norlin of Arizona-based Transmosis says certificates show “baseline understanding”
• Many credential programs haven’t addressed tech industry needs
• Industry needs theoretical learning blended with practical knowledge
• “Real-world work experience” critical missing link for job candidates

The specific success stories

Two trades show positive credential impact:

• Electricians earn average yearly salary of $62,350
• Can boost wages by $3,400 annually with National Center for Construction Education and Research credential
• Plumbers, pipefitters, steamfitters earn average $62,350 annually
• Can increase by $1,900 with American Welding Society plumbing credential

The policy recommendations

Report calls for funding reform:

• Public funding for credential programs “must be tied to empirical evidence of labor market value”
• Need to protect learners and taxpayers from wasting time
• Matt Sigelman of Burning Glass Institute highlighted successful programs
• “Return on investment for vast majority of credentials sure to be negative”

Read more:

• Report finds 88% of skilled trade credentials have no impact on wages

Update: An earlier version of this article included an image that was not related to the story.