Maximize Your Earnings with Certifications

Insights from the 2022 BLS Survey (Released January 25, 2023)
Quick Takeaways
  • Regardless of age, race, or gender, holding a certificate or license can considerably enlarge earnings. In most situations, this could mean an increase in weekly pay by as much as 30%.
  • Women who possess certifications or licenses not only bridge the traditional wage gap, but they also can even outearn their male counterparts who lack these credentials.
  • As educational attainment rises, the financial effect of additional certifications or licenses diminishes.

Introduction

The 2022 Bureau of Labor Statistics (BLS) Survey's findings, released January 25, 2023, offers an in-depth examination into US workers' earnings potential. The report highlights the importance of acquiring certifications and licenses that can increase weekly pay by a remarkable 30% or more. For professionals and job seekers, this insight provides a clear path to enhance their marketability and income potential.

Although certifications and licensing often require an upfront expense, the BLS report provides a compelling justification for bearing these costs, showcasing that they can quickly pay back the initial investment.

What are Certifications and Licenses According to the BLS?

Certification

Originating from non-governmental organizations, certifications validate an individual's expertise in a specific field, offering a competitive edge in job pursuits.

Licenses

Government agencies issue licenses, granting individuals legal authorization for specific professional roles or tasks.

Note that for this study, an individual may possess multiple certifications or licenses. Moreover, having a license does not preclude one from earning certifications.

Analyzing Age Dynamics

For Ages 16 years and Over

  • With Certification or License: Median weekly earnings of $1,297
  • Without Certification or License: Median weekly earnings of $986
  • Percentage Boost: 31.6%

For Ages 55 years and Over

  • With Certification or License: Median weekly earnings of $1,393
  • Without Certification or License: Median weekly earnings of $1,054
  • Percentage Boost: 32.2%

For Ages 65 years and Over

  • With Certification or License: Median weekly earnings of $1,302
  • Without Certification or License: Median weekly earnings of $963
  • Percentage Boost: 35.2%

Breaking Down the Age Effect

For workers aged 55 or above with a certification or license, there's a median increase in weekly earnings of $339. Similarly, individuals aged 65 or older who possess such credentials also observe a median weekly rise of $339 – an invaluable boost for those contemplating an extended work tenure.

Consider a worker who's 16 years old and secures a certification or license. This credential could mean an added median earning of $311 every week. If this individual starts their career at 16 and retires at 65, they would have a working span of 49 years. Given there are typically 52 weeks in a year, this translates to an impressive additional earning of approximately $792,428 over their working lifetime.

Analyzing Gender Dynamics

Women

  • With Certification or License: Median weekly earnings of $1,190
  • Without Certification or License: Median weekly earnings of $878
  • Percentage Boost: 35.5%

Men

  • With Certification or License: Median weekly earnings of $1,430
  • Without Certification or License: Median weekly earnings of $1,084
  • Percentage Boost: 31.9%

Breaking Down the Gender Effect

Certifications and licenses serve as a significant equalizer regarding gender discrepancies in pay. While a general earnings gap exists between men and women, acquiring these professional credentials bridges that gap to a notable extent.

When a certificate or license is factored in, both genders receive an uplift of about 30% in earnings. In monetary terms, this translates to men potentially adding $346 to their weekly paychecks, while women might experience an increment of roughly $312.

Although women continue to earn less than their male counterparts, the data reveal an empowering trend: Women possessing a certificate or license surpass the average earnings of men who don't have these credentials.

  • Women With Certification or License: Median weekly earnings of $1,190
  • Men Without Certification or License: Median weekly earnings of $1,084
  • Percentage Boost: 9.8%

This wage advantage amounts to women earning, on average, an extra $106 weekly. If a woman obtains a certificate or license at age 16 and continues her career until age 65, this differential translates to a staggering $270,088 in additional earnings over her work lifespan.

This analysis underscores the transformative power of professional credentials in mitigating traditional wage gaps. It's a testament to how certifications and licenses can serve as invaluable assets in a woman's career trajectory, providing her with not just financial benefits but also leverage in challenging the existing wage structures.

Earnings by Educational Attainment

The correlation between educational attainment and the benefits of certifications and licenses reveals an intriguing trend. As individuals climb the academic ladder, the financial boost associated with additional qualifications such as certifications and licenses begins to taper. This is not to say they become irrelevant but merely that their relative financial influence diminishes. A detailed breakdown is provided below.

For Those with Less Than a High School Diploma

  • With Certification or License: Median weekly earnings of $785
  • Without Certification or License: Median weekly earnings of $676
  • Percentage Boost: 16.1%

For High School Graduates (No College)

  • With Certification or License: Median weekly earnings of $982
  • Without Certification or License: Median weekly earnings of $833
  • Percentage Boost: 17.9%

For Individuals with Some College or an Associate Degree

  • With Certification or License: Median weekly earnings of $1,045
  • Without Certification or License: Median weekly earnings of $940
  • Percentage Boost: 11.2%

For Those Holding a Bachelor's Degree Only

  • With Certification or License: Median weekly earnings of $1,436
  • Without Certification or License: Median weekly earnings of $1,431
  • Percentage Boost: 0.3%

For Professionals with an Advanced Degree

  • With Certification or License: Median weekly earnings of $1,731
  • Without Certification or License: Median weekly earnings of $1,780
  • Percentage Drop: −2.7%

Analyzing the Educational Data

Although certifications and licenses significantly boost earning potential for those with lower educational attainments, the effect plateaus or even slightly reverses for higher degrees – specifically, the following occurs.

  • Those without a high school diploma see an evident boost in their earnings with the right credentials.
  • High school graduates and individuals with some college education or an associate degree observe a substantial percentage increase in median weekly earnings with a certification or license.
  • For bachelor's degree holders, the difference is marginal, suggesting that at this level, other factors such as experience or specific industry knowledge may play a more crucial role.

Interestingly, professionals with advanced degrees earn slightly less with certifications or licenses than without. This might indicate that in highly specialized fields, intrinsic expertise and direct experience hold more value than supplementary certifications do.

Certifications & Licenses: More Than Just Monetary Benefits

  • Industry Recognition: Certifications amplify your professional identity, showcasing dedication and mastery.
  • Perpetual Upgrading: Embrace the ethos of continual learning, staying ahead in your domain.
  • Networking: Access premium events and seminars that certifying bodies host, expanding your professional circle.
  • Self-assurance: Holding a recognized certification can boost confidence, reinforcing an individual's belief in their capabilities and expertise.
Coursera Certificate Courses

A Worthwhile Investment: The True Value of Certifications and Licenses

The ever-dynamic job landscape has shifted its focus from solely evaluating candidates based on traditional educational qualifications. The 2022 BLS survey underscores this trend, emphasizing the monumental effect certifications and licenses have on earnings, particularly for those without bachelor's or advanced degrees. However, their power goes beyond just numbers.

One of the standout revelations from the data is the transformative influence these professional credentials have in leveling the gender wage gap. Although traditional disparities persist, the survey indicates that women with certifications or licenses can not only bridge the wage divide but also outearn their male counterparts who lack these credentials. This finding is monumental, suggesting these certifications and licenses can be a catalyst for change, helping women challenge and overcome longstanding wage imbalances.

By investing in these professional validations, individuals aren't merely boosting their earning potential. Rather, they are making a strategic decision to enhance their professional brand, thus positioning themselves as experts in their respective fields. For women, this investment also serves as a formidable tool to rewrite wage narratives that have persisted for too long.

The undeniable value of certifications and licenses transcends monetary benefits. They stand as a testament to an individual's commitment, expertise, and determination to excel in their profession. As the BLS data suggest, they're not just worth every penny, they're invaluable for those seeking to stand out in a competitive market.

For those pondering the potential returns of certifications and licenses, the numbers and the narratives both suggest that they are, undoubtedly, a worthwhile investment.

This section features several affiliate links, meaning we will earn a small commission if you purchase through these links. This comes at no extra cost to you and helps support our work.