There is no shortage of certifications, badges, and credentials for entrepreneurial employees to acquire and recruit potential employers — especially when everyone is trying to become AI literate.
But which ones are really worth it?
Non-degree credentials are increasingly prevalent on U.S. resumes, with more than 1.5 million unique certificates, certifications, badges, and microcredentials to choose from, according to a new analysis from the Brookings Institution. After the passage of President Trump’s Big Beautiful Bill, some prestigious programs will even be eligible for Pell Grants, a federal aid program for low-income students, as more workers eschew traditional four-year degrees that are increasingly not worth the money.
Yet the impact of non-degree credits on workers’ wages varies widely, with some proposals showing minimal growth. And it’s not always clear for job seekers to pick up new skills in ultra-competitive job searches.
“The growth of this market has been tremendous,” Marcela Escobari, a senior fellow at the Brookings Institution, told Yahoo Finance. “People are going to these tools, and still a lot of them are crap — and a lot of them can be really useful.”
“We have a skills market that is not very accountable,” Escobari added.
To get the most out of non-degree accreditation, the type of program is important, as is the job field, Brookings researchers found in a review of resume data from Revival Labs.
Career-related certifications that are recognized by the industry and require a proctored exam or third-party certification, for example, offer strong returns to workers’ compensation, even when multiple certifications are accumulated.
A job seeker attends a job fair in Dallas on January 14, 2026. (AP Photo/LM Otero) ·The Associated Press
“Certifications seem like they add value to surplus, and that may have to do with their rigor and industry familiarity,” said Ian Seale, a senior researcher at the Brookings Institution. “They seem to generally provide valuable skills.”
Meanwhile, badges — a digital representation of a worker completing an online program — may offer more modest, one-time pay benefits, even if they’re not related to the worker’s industry.
As for who gets credit, college-educated and experienced workers flock to the program more than early-career workers and people without college degrees, despite the latter two categories experiencing the largest wage gains from higher skills.
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In fact, workers without a bachelor’s degree can see a 6.8% wage premium for their first job-related non-degree, according to the Brookings Institution. These workers may also be eligible to take advantage of the Pell Grant program, which is open to non-degree holders.
“Someone with less experience and a high school degree gets more value, and still gets credit at a lower rate,” Escobari said. “That’s where startup opportunity—if accompanied by real accountability and data about value—can change that.”
Read more: How to pay for college without taking on student loans
Higher pay isn’t the only benefit of non-degree credentials. The Burning Glass Institute report notes that some documents place workers on a better path toward mobility and stability.
A “more holistic assessment shows that nearly 1 in 3 documents move workers forward, either by increasing wages, moving up a current career path, and/or helping workers find new jobs,” the report said.
Still, “the data also confirms that 69% of documents provide minimal value.”
“Non-degree degrees are not just mechanisms for people to learn, but mechanisms for people to demonstrate that they’ve acquired skills that their resumes don’t offer,” Matt Siegelman, director of the Burning Glass Institute, told Yahoo Finance. “When too few of them work, it means that employers have trouble interpreting them and are less likely to respect them, and workers don’t know which one to choose, and ultimately in many cases decide to abandon the whole effort.”
Sifting through the avalanche of potential credentials can be difficult, especially when competition in the job market is fierce, and job seekers are feeling the pressure between more qualified candidates and the ever-increasing advances in AI that are both displacing new workers and creating new types of jobs.
The AI tool Google Gemini is shown being used in the classroom. (AP Photo/Damien Duergens) ·The Associated Press
“AI-related credentialing is growing at least twice as fast as non-AI credentials, even though it’s a small fraction of total credential growth,” Escobari said. “Growth is particularly strong among people who are implementing AI, not growing it.”
In fact, LinkedIn’s Skills on the Rise list, published on February 24, noted that AI-based skills are growing rapidly. Mercer’s latest Global Talent Trends for 2026 report emphasized that while many executives expect headcount to decrease amid AI advancements in the next two years, many HR managers also felt “the problem of attracting talent with vital digital skills is the biggest workforce challenge facing businesses in 2026.”
But that doesn’t mean that everyone with “AI” in the title should compete for general credit. Since there are many use cases for the technology, employers may be more interested in how workers can apply AI in their chosen field, or be a complement, if workers are at risk of being displaced due to exposure to AI.
“Disclosure is not a bad thing,” Escobari said. “It’s the integrity that makes the difference in what you have to think about when you’re choosing to pick a skill, and what to pick in terms of flexible work out there.”
Emma Aukerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her emma.ockerman@yahooinc.com.
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