National Governors Association study examines state impacts of skills-based practices
WASHINGTON, D.C. – Skills-based job postings rapidly increase when states drop degree requirements for public sector jobs, according to a new National Governors Association (NGA) study. The report, Empowering Progress: Harnessing Skills-Based Strategies to Drive Public Sector Excellence, highlights the early impacts of degree removal in the public sector, explores best practices and challenges in adopting skills-based strategies, and offers a set of recommended metrics to help track the impact and effectiveness of related policy and practice changes.
Over half of U.S. state governments have adopted policies encouraging skills-based hiring, including eliminating degree requirements for many job postings. These states saw faster growth in job postings that don’t require degrees compared to states without such policies – helping states address talent shortages, diversify their workforce, and improve hiring outcomes.
“The shift away from degree requirements is a win for workers and for economic growth,” said Timothy Blute, Director of NGA’s Center for Best Practices. “Governors are taking the lead in advancing skills-based hiring practices – opening more doors for qualified jobseekers without a college degree and helping their states bridge workforce shortages.”
This report was made possible through the support of Walmart, with data analysis provided by Lightcast, a leader in labor market analytics.
If action within state and territory governments can catalyze broader action within the public sector, as many as 22.0 million jobs could be affected, or 14.1% of U.S. jobs. Even limiting to public administration roles – i.e., executive branch agencies and departments but not public hospitals, education institutions, or the military – leadership at this level could affect 10.4 million jobs, or 6.7% of U.S. jobs, according to Lightcast data.
States have a compelling reason to change their hiring practices to access a larger talent pool. Lightcast’s study on workforce demographics shows 27% of state government jobs and 26% of local government jobs (excluding education and hospital jobs) are held by workers 55 or older. Rising Baby Boomer retirements and declining labor force participation, among other factors, will result in a deficit of 6 million workers by 2032 across the public and private sectors.
Skills-based practices can achieve better hiring outcomes: improved matches between candidates and jobs, lower turnover, and higher job satisfaction. And more broadly, greater adoption of skills-based hiring can facilitate career advancement and mobility for workers, which is productive for the economy overall.
Click here to download the full report, and click here to learn about NGA’s Skills-Driven States initiative.
