Workforce Decoded 2025:
AI, Skills, and the Future of Hiring
Insights From More Than 3,100 U.S. Business Leaders and Decision-Makers
Employers Are Looking for More Signals of Workforce Readiness
In late 2025, WGU commissioned a survey to gain insight into the rapid evolution of what it means for employees to be ready for their careers. WGU's Workforce Decoded 2025 report presents clear and specific data on the needs of modern businesses, employee expectations, and the role that education plays in career readiness.
Get the Complete Employer Perspective
Download the full Workforce Decoded report for additional data, employer insights, and workforce trends
Driving The News
68%
of employers say degrees remain important.
86%
view certificates as valuable indicators of readiness.
46%
plan to increase their focus on skills-based hiring in the next year.
Degrees Still Matter — but Employers Expect More
Despite frequent headlines about a gap between higher ed and workforce needs, the data shows a more encouraging landscape about how employers view the ROI of a degree. A majority of employers (68%) said they view college degrees as important, with IT & technology and finance & professional services placing the highest importance on degrees compared to other industries.
However, only 37% of employers say higher ed institutions are preparing students with the skills needed to be successful in the workforce.
Employers Are Looking for Multiple Signals of Workforce Readiness
Confidence in workforce preparation and the perceived value of degrees rise together. Employers are not trading one signal for another; they are building a wider readiness portfolio where degrees, credentials, and competencies collectively strengthen hiring decisions.
Degrees Still Matter — but Employers Are Looking Beyond Degrees Alone
Employers continue to value degrees, but now almost half plan to increase focus on hiring for skills.
Quick Takeaways
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%
view degrees as important.
37%
of employers say higher ed institutions are preparing students with the skills needed to be successful in the workforce.
78% of Employers Say Experience Can Matter as Much as a Degree
Employers are playing an increasingly active role in defining what qualifies a candidate for a job outside of a diploma. Beyond viewing degrees as general indicators of preparedness, many are now seeking more specific evidence of a candidate’s ability to perform in a given context. This shift has brought certificates, practical experience, and demonstrated skills to the forefront of hiring decisions.
Survey results indicate a shift toward multifaceted evaluation of candidate qualifications that combines broad foundational knowledge with role-specific competencies. This evolution is prompting questions about how learning in higher education is organized, how it is assessed, and how it maps to workforce expectations.
Key Facts
86% of Employers Say Certificates Are Valuable Signals of Job Readiness
While more than half of employers (53%) indicate the biggest challenge to evaluate a candidate’s skillset is validating their skill claims, most employers see certificates as a key solution.
Employers overwhelmingly support the value of certificates as credible signals of a candidate’s skills. A full 86% of employers view certificates as somewhat to extremely valuable, with industries such as construction, IT, healthcare and finance leading the charge. This signals employer recognition that skills-verified credentials can meaningfully demonstrate job readiness, particularly when aligned with employer needs.
Biggest challenges to evaluating candidate's claims
46% of Employers Plan to Increase Skills-Based Hiring
Looking ahead, 46% of employers plan to increase focus on hiring for skills over degrees and 43% of employers plan to place more emphasis on work experience and internships/apprenticeships as well as increased use of automation or AI in screening applicants.
Employers continue to value traditional degrees, but they're placing greater emphasis on demonstrated skills, industry-aligned credentials, and practical experience
Get an email with a PDF version of the report.
Changes to Hiring Practices in the Next 12 Months
Critical Thinking, Time Management and Adaptability Top Employers’ Skills Lists
Quick Takeaways
Top Skills
Critical Thinking, Time Management and Adaptability are the three most critically important skillsets for job success in the next 12 months
Must Haves
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.
Show Me
52% of employers assess AI competency through technical or skills-based assessment and/or on-the-project evaluations.
Key Facts
Employers Prioritize Skills AI Can’t Easily Replicate
Employers identify critical thinking and problem-solving, time management and adaptability/resilience as the three most critically important skillsets for job success in the next 12 months.
For Gen Z job seekers, employers emphasize the importance of developing transferable skills – particularly those that AI cannot easily replicate, such as critical thinking and problem-solving. They also highlight the need for continuous learning and upskilling, especially in areas like digital fluency, AI literacy and emerging technologies.
Employers Are Looking for Proof of AI Fluency
Employers are using various methods to evaluate a candidate’s AI skills:
39% of employers are evaluating candidates’ competency in AI through assessing real-world experience using AI tools.
32% of employers are looking for certificates.
29% of employers conduct technical interviews or coding challenges specific to AI/ML.
How Hiring Professionals Evaluate Candidate Competency in AI
Employers Want Candidates to Demonstrate What They Can Do
When assessing whether a candidate has the skills required to succeed in the role they are hiring for, employers are focusing on whether a candidate can demonstrate skills on the job. 41% of employers said “on-the-job evaluations during probationary/trial periods” are top methods for evaluating skills.
Top Methods for Assessing Candidate Skills
Discover How Other Employers View Higher Education
Methodology
This report is based on findings from a national survey conducted by Centiment on behalf of WGU between September 30, 2025 – October 15, 2025. The survey was designed to capture employers’ perspectives on workforce development, hiring practices and emerging talent needs.
A total of 3,147 U.S.-based respondents completed the online survey. Participants represented organizations of varying sizes across a range of industries and regions. To ensure relevance, respondents were screened to confirm that they are currently employed and have direct involvement in the hiring process. The sample was developed to provide a broad view of employer sentiment in today’s labor market.