America’s credential marketplace is currently a confusing tangle of more than 1M degrees, certificates, badges, and licenses from more than 60K providers. Eager jobseekers struggle to connect their skills to opportunities while millions of jobs sit unfilled. Workers are left guessing which credentials matter to secure a job, and employers can’t easily identify candidates with the right skills.
This mismatch costs the economy a trillion dollars every month. Another emerging piece of the puzzle is the proliferation of artificial intelligence, which can only help job seekers and employers if the data that feeds into these AI systems is consistent and high quality. Thus far in this space, AI has notably been used to churn out identical-sounding applications that are overwhelming recruiters and hiring managers.
Policymakers have the power—and the responsibility—to fix this credential chaos, and transparency is the key. Credential transparency enables workers, employers, and educators to clearly understand which skills are taught, what credentials signify, and how they align with labor market needs.
Structured linked open data is the engine that can drive this clarity.
AI will revolutionize career guidance, skills matching, and job placement, but maximizing its potential to promote credential transparency will depend on how well the data it analyzes is organized. Without a uniform data structure, even the most sophisticated tools will struggle to deliver meaningful insights and guidance.
Credential Transparency Description Language (CTDL), an open-source, universally recognized framework already adopted in many states, organizes credential and skills data into a consistent format, making it easy for AI tools to process and apply.
With this in mind, the blueprint for policymakers to begin untangling the credential chaos is clear.
Mandate standardized data formats. Policymakers should mandate all education and workforce systems to adopt open data standards like CTDL. Standardized data formats allow credentials, skills, and job data to flow seamlessly between systems—also known as interoperability. Without standardization, data silos will persist, while interoperability and usability remain out of reach.
Incentivize states to build interconnected registries. States need to create seamless pathways between education, training, and employment registries, ensuring that workers and employers can easily access and navigate this information. Funding support tied to workforce outcomes, such as increased placement rates or reduced skills gaps, can spur state adoption of structured data.
Support employer-driven initiatives. Policymakers need to support employer initiatives that articulate skill needs using standardized data formats like CTDL. Tax credits, federal or state grants, or public-private partnerships can motivate businesses to align their hiring frameworks with credential and skill registries. For example, industries that face critical shortages, such as healthcare, could benefit from AI-powered tools that map required skills to local training programs, reducing hiring barriers and strengthening talent pipelines.
Provide funding and guidance for education and workforce programs. Federal policymakers must allocate dedicated funding to implement statewide credential and skill registries built on open standards like CTDL, enabling seamless integration of education and workforce data. Federal guidance should outline best practices to align these systems with labor market needs, ensuring credential transparency becomes the foundation of every state’s workforce strategy. With this support, states can build the infrastructure needed to connect workers, employers, and training providers effectively.
We know this approach works. States like Indiana and New Jersey are already seeing the benefits of adopting structured data practices to expand opportunities for their learners and workers. Indiana’s My Achievement Wallet connects verified worker credentials directly to employer needs, powered by AI for job matching and career planning. At the same time, New Jersey’s MyCareerNJ platform helps individuals discover opportunities and navigate career transitions. These initiatives spotlight the critical role policymakers can play in championing solutions that unlock access to jobs and strengthen workforce ecosystems.
The stakes are too high for complacency. Without immediate action, workers will continue to face dead ends and employers will struggle to find talent. Policymakers must act now to build a structured data infrastructure that supports AI-powered workforce solutions. The future of millions of jobseekers depends on it.
Scott Cheney is the Chief Executive Officer of Credential Engine, a nonprofit on a mission to map the credentials and skills landscape with clear information.