Our LER Ecosystem SmartReport is an exhaustive examination of the current state and growth of an emerging ecosystem.  We are now in the third year of collecting this information which allows us to identify how the ecosystem is evolving. Our discussions with Learning and Employment Record experts covered not only data standards, technical interoperability, and specific issuing use cases but also broader trends such as how state and federal governments are evolving, what market forces are creating a greater need for verifiable claims, and how consumer brand experiences are being pieced together to grow LER adoption.  As we said last year, the big takeaways are that the future is bright, momentum is building, and a dizzying amount of innovation is occurring in the space. However, there is a different positive tone this year - the adoption of learning and employment records at scale feels more inevitable than ever before according to many of the experts we interviewed.  Let’s dive into the top 10 LER trends of 2025.

1. State investments in skills-based hiring, skills-focused education pathways, and LER tools for residents are laying the groundwork for LER adoption at scale

On December 16th, 2024 California Governor Newsome announced the California Master Plan for Career Education. This plan includes a new “career passport” that is “envisioned as a digital tool with academic transcripts, verified skills and credentials earned outside the classroom - in the military, for instance - to help workers showcase their abilities to potential employers.”  In other words, California plans to launch a LER to make sure that learning records are interoperable across the state and that Californians are equipped to present evidence of their skills to employers who prioritize skills-based hiring practices.

California is not the first state to announce this type of initiative but it is the latest.  Alabama Governor Kay Ivey announced the launch of the Alabama Talent Triad in December of 2023 which combines a LER solution for state residents with a LER Talent Marketplace to match job seekers to employers. Arkansas is currently developing Launch a website that will enable job seekers to upload LER data from self-sovereign credential wallets in 2025 to power their profile and better connect them to education and training opportunities and jobs.

While these states are implementing LER infrastructure and strategy many others are advancing skills-based hiring initiatives. 25 states have enacted executive orders and legislation to remove degree requirements from public sector roles. 23 of those states and Puerto Rico participate in the National Governor’s Association Skills In The States Community of Practice. States in this community of practices are shifting their hiring and talent management practices to prioritize skills. Many are creating skills taxonomies, rewriting job descriptions and interview questions, creating skills-based hiring toolkits and training for hiring managers, and redefining career pathways in terms of skills, according to Sytease Geib, Project Manager, Skills Based Initiatives for the National Governors Association. “Many of these states are transforming their hiring and talent management practices to prioritize skills", said Geib. “How to identify and assess skills in the hiring process will be a focus in 2025, especially how you do so in a legally defensible way. This is where Learning and Employment Records could provide clear, tangible value as a mechanism for job seekers to provide dividend of their skills to employers". 

Similarly, the National Association of Workforce Boards has held in-person meetings, roundtables, learning labs, and virtual events to convene employers, workforce development boards, and stakeholders for discussions about skills-based hiring and LERs to prepare both employers and workforce boards to adopt LER data as it scales.  According to Sarah Schade, the Program Manager leading this effort for NAWB, a deeper focus is needed on how individuals who don’t go through traditional education and training channels can be issued LER data to support their job search efforts.

"When job seekers are served by the workforce boards, there are different needs that are addressed and different levels of assistance provided. Those individuals that are unemployed may have a GED or diploma, but usually don’t have degrees, resumes, or formal training credentials," said Schade. "To enhance the workforce development system, it's crucial to have a focus on skills-based hiring. Employers have the jobs and people have the skills, we need to help these individuals document their work experience more easily and collaborate with training providers to develop job-ready skills. This approach ensures that the skills they acquire are verifiable, making them more competitive in the job market and better prepared for employment opportunities."

The transition to an economy where skill development, recognition, and hiring practices are at the center of state and national workforce development strategy is underway.

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23 states and Puerto Rico participate in the National Governor’s Association Skills In The States Community of Practice.

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2. As credential management tools expand, a new breed of credential wallets from consumer-facing brands has emerged to pair credential storage and portability with curated services to enhance the value of LERs for target audiences.

Credential Management tools exist in many formats and across a growing number of technologies. For example, credential-issuing platforms like Accredible provide their credential holders with a number of ways to share their credentials, including to social media platforms, embedded in emails, via links, and most recently to a LER Resume Builder, via API integrations with providers. These tools are offered to individuals when they are issued a credential from an issuer leveraging that platform. Meanwhile, self-sovereign credential wallets enable users to store credentials from many credential-issuing sources, store those credentials locally on their device, leverage the latest verifiable claim technology, and are open to the public.

A new category of credential management tools grew significantly in 2024 and will grow several times faster in 2025 - wallets from consumer-facing brands that enable credential management combined with a curated set of services designed for a specific audience. These credential wallets may provide these services directly in the wallet or may integrate with other technologies to maximize the utility of credentials stored in the wallet.

For example, Western Governors University has partnered with iQ4 to develop both the WGU Achievement Wallet for WGU students and alumni and the Indiana Achievement Wallet which serves Indiana residents including those credentialed by other higher education institutions like Purdue University and Ivy Technical College. These Achievement Wallets help learners manage their credentials and prompt them to upload resumes and provide other evidence of skill to form a robust skills profile. This skill profile can help them understand viable career paths they are qualified for or identify skills gaps for jobs and career paths they wish to pursue. Launching in early 2025, these learners will be able to export their skill profiles and verifiable credentials to SmartResume to form an LER Resume that can be used in multiple LER Marketplaces or downloaded as a PDF for use on job boards and within Applicant Tracking Systems.

“Wallets can do more than store your verifiable claims,” said Darin Hobbs, Leader of Learning and Employment Record and Digital Credentials Ecosystem, for Western Governors University. “This is a tool to help students connect with the meaning of their learning, understand their progression, and gain insights on how to use the LER as the story they can tell to others to contextualize their skills. Because human progress is what this is all about.”

Arizona State University’s Pocket Wallet, the Tennessee Board of Regent’s TBR Cred Wallet, SchooLink’s student wallet, and even the State of California DMV wallet fall into this category. These “Services” wallets have been developed either by in-house resources or by a new crop of white-label wallet tech providers including SpruceID, Level Data, and iQ4.

This is not a surprising trend.  As familiarity with credential management tools grows users are becoming more comfortable using LER data in different settings and are looking for ways to do that.  A Jobs for the Future’s 2024 survey that explores the role of digital wallets and digital credentials in the job markets surfaced key findings:

• 46% of job seekers are familiar or somewhat familiar with digital credentials
• 1 out of 4 respondents have used digital credentials in their resume or job application materials
• 77% of digital credential users say communicating their skills to prospective employers was easy
• 64% of respondents are familiar with digital wallets

The rapid evolution of credential management tools highlights the growing demand for flexible, accessible, and impactful ways to leverage Learning and Employment Records. From open solutions to branded service wallets, these technologies are empowering learners to take control of their credentials, align them with career aspirations, and share them effectively in a competitive job market. As more institutions and organizations embrace these tools, the ecosystem will continue to expand, fostering greater innovation and accessibility. Ultimately, credential wallets and their integrated services promise to bridge the gap between education, skills, and meaningful employment, helping individuals not only document their achievements but also unlock their potential for lifelong growth.

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Jobs For The Future’s report on the role of digital wallets and credentials in the job market showed that job seekers are receptive to this technology and ready to apply it.

3. Identity becomes a mainstream Verifiable Claim use case, bringing new value to the LER ecosystem

My neighbor owns a landscaping company, and every day, most of his employees arrive at the company parking lot by car. However, when it's time for individual crews to head out to job sites in company trucks, over half of his employees are unable to provide a valid driver's license. For liability reasons, he can’t allow them to drive the company trucks, which forces his best employees to leave job sites to run supply errands. He's eager to find more efficient ways to vet job applicants and verify if they have the legal driver’s licenses needed for the job. Even better, he wishes he could filter talent in talent marketplaces and pre-identify candidates who already have this qualification verified. Fortunately, this capability is becoming more achievable thanks to innovations in identity services powered by verifiable claim technology.

For example, the California mobile driver’s license (mDL) is currently being piloted in California, available to the first 1.5 million participants who sign up. To enroll, residents need only a smartphone and a valid California Driver’s License. After downloading the CA DMV wallet app for free, they log in to their MyDMV account and follow simple instructions to scan their physical license or ID card. This new verifiable identity can then be used by the Transportation Security Administration for identity checks at airports like SFO and LAX, and by retailers for age verification at select locations in Sacramento via the TruAge service.

As Manu Sporny, Founder and CEO of Digital Bazaar, explains, over 1.2 million California residents have already participated in the pilot. “When a consumer goes to a liquor store, all they need to prove is that they’re over 21,” says Sporny. “The rest of the information on their driver’s license is unnecessary and can be a security risk if shared. With selective disclosure, individuals can use verifiable credentials to prove they meet the age requirement while keeping the rest of their information private.”

The combination of identity verification and the selective disclosure features of verifiable credentials offers significant potential for the Learning and Employment Record (LER) ecosystem. Imagine a talent marketplace where employers can instantly verify a candidate's legal qualifications—such as driver’s licenses, citizenship, or security clearances—without the individual sharing irrelevant personal details. This not only benefits job seekers but also accelerates the hiring process, making talent discovery and recruitment more efficient.

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California’s launch of the mobile driver’s license brings verifiable claim technology and selective disclosure mainstream.

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4. Open Badge 3.0 gains traction bringing decentralized verification and other benefits to the ecosystem

Thank you to the tireless efforts of Dr. Kerri Lemoie, Nate Otto, Mark Leuba, and the team at 1EdTech the Open Badges 3.0 spec was ratified in May of 2024 and adoption ramped up over the second half of the year.  The 3.0 spec adopts the W3C Verifiable Credentials (VC) data model, aligning the two most prominent global standards for the recognition of singular verifiable credentials. The major breakthrough is the verifiable data can be validated without having to check back with the issuer in real-time.  This protects the credential holder in two important ways.  First, they are protected from the consequences of an organization that has issued them a credential going out of business or being otherwise unable to verify that credential in the future. Second, it means that the holder of that verifiable data can use that data in a privacy-preserving manner - there is no signal back to the issuer when that data is verified or by whom. These capabilities continue to align the verifiable credential and LER ecosystem with decentralized Web 3.0 and empowerment technology principles. Open Badges 3.0 also supports Decentralized Identifiers giving users more control and privacy. 

As Dr. Kerri Lemoie, Director of the Digital Credentials Consortium at MIT explains it, “The difference between digital credentials (like older Open Badges up to 2.0) and Verifiable Credentials (like Open Badges 3.0) is that older Open Badges are typically hosted on the issuer's or issuing platforms websites. Verifiable Credentials and Open Badges 3.0 are digitally signed, structured text files that are portable and can exist outside of the issuer platform. Once the issuer signs the data, the earner of the credential holds it. The credential is verified by checking the integrity of the signature and that the data has not been tampered with since it was signed. Additionally, a verifier may choose to check if the identity of the issuer can be found in an issuer registry. Verifier Plus is an example of a web platform (available as open source software) provided by the DCC that performs the verification and issuer identity check as a public service. Open Badges 3.0 are privacy-preserving because all this checking can be done without going back to the issuer. This means the issuer doesn’t know where the earner shared it (just like the DMV doesn’t know where you use your physical license).”

Open Badges 3.0 also allows for richer metadata enabling the embedding of evidence about how a claim can be supported with context for how it was earned, what it represents, and even documentation or examples that feature the individual’s work. Imagine a badge issued to an individual that verifies their skill in gas metal arc welding that contains a private link to a video of them executing that weld. This can be used in the job application or talent discovery process to speed up talent vetting and discovery. Imagine being able to use LER credentials to get a job across the country before a move without having to interview in person due to these capabilities.

The growth of OpenBadges 3.0 has led to the creation of verifier software (a new category to the 2025 SmartReport) which can be embedded in various technology platforms so those platforms can unpack LER data and translate it into language or code native to that platform so they can leverage that data to better perform services according to Nate Otto, Founder of SkyBridge Skills. This software potentially paves the way for faster tech adoption by different entities in the learn-to-work ecosystem including job boards and applicant tracking systems.

Adoption of the new standard is accelerating.  In October Credly announced their support of Open Badges 3.0. Jason Weaver, Vice President of Product and Technology for Parchment at Instructure confirmed Instructure is launching support of Open Badges 3.0 early in 2025. And Danny King, CEO of Accredible, confirmed they would support the tech standard by the end of 2025.  At SmartResume all five of the verifiable claim integrations we completed with partners in the fourth quarter of 2024 were for the Open Badge 3.0 spec or the Comprehensive Learner Record 2.0 spec which also aligns with the Verifiable Credential standard.

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5. The emergence of open-source issuing technology signals that barriers to entry for verifiable claim issuance are on their way to zero

The Digital Credentials Consortium has developed open-source software for issuing and verifying credentials as well as a wallet, verifier, and underlying libraries. All of this software is available on Github. Any organization can access this library to leverage this software to develop issuing capabilities, but that organization will need technical capabilities to implement and host the software.  

Arizona State University’s Enterprise Technology team and Digital Promise have already developed their own solutions on top of this open-source software to bring solutions to market. Digital Promise announced its open-source badging technology Badge Engine at the end of October. After nearly a decade of relying on badge issuance solutions powered by other platforms, Digital Promise decided to bring those capabilities in-house while also offering those capabilities to others. They are receiving interest from both companies sophisticated enough to handle the technical implementation and smaller companies who will need a service partner to activate the code according to Christina Luke Luna, Chief Learning Officer, Pathways & Credentials at Digital Promise. Digital Promise is exploring ways to support these smaller companies.

Lower barriers to entry will be a good thing for the Learning and Employment Record ecosystem as costs associated with issuing are often cited by organizations who have not yet entered the ecosystem. Open source solutions may lower start-up costs as credential issuance scales. Large credential issuance companies are not resting on their laurels though, they are developing value-added services and partner ecosystems to increase the value of their issuing capabilities and drive further differentiation beyond verifiable claim creation and issuance. For example, contributors to this report from both Accredible and Instructure commented on their deep investments in guiding users down career and educational pathways as they earn credentials.

“From my point of view the more open source solutions that lower barriers to entry the better,” said Danny King, CEO of Accredible. “All credentials should be digital and verifiable and this will help with that. We embrace and encourage more options to help organizations issue credentials. We will compete on providing great hosting, great customer support, and wrap-around services for both credential issuers and credential holders.”

The momentum behind open-source solutions and innovations in credential issuance underscores the potential for transformative growth in the Learning and Employment Record ecosystem. As technical and financial barriers decrease, more organizations can engage with credentialing technologies, driving widespread adoption and fostering greater interoperability. Meanwhile, the emergence of value-added services and expanded partner ecosystems will ensure that both managed service providers and self-hosted solutions continue to thrive, creating a dynamic environment where diverse approaches to credential issuance coexist and evolve. Ultimately, this convergence of open-source accessibility and competitive innovation will enhance the ecosystem's capacity to meet the needs of learners, educators, and employers alike.

6. DHS Sets Standards for Verifiable Credentials and Interoperability

The Department of Homeland Security (DHS) has demonstrated its commitment to advancing verifiable credentials by flexing its rule-making authority to set technical standards and interoperability requirements. According to several experts, DHS has spent the past seven years learning about verifiable credentials, engaging with technology providers, and funding research and pilot projects. This work culminated in 2024 with the publication of standards that any technology provider must meet to power verifiable credentials for DHS.

Many believe these standards will become a de facto benchmark for other federal agencies, positioning DHS as a pivotal player in the verifiable credentials ecosystem. To ensure compliance, a set of tools has been developed to help technology vendors meet these standards:

• CanIVC.com: Created by Digital Bazaar, this website offers a community compatibility dashboard for Verifiable Credentials technology companies. It allows LER technologies to demonstrate their capabilities through weekly testing against W3C test suites which cover many DHS requirements. Interoperability tests ensure that user data remains portable and accessible across platforms. Notably, only three of the technology vendors listed here are also participants in our LER Ecosystem SmartReport, highlighting both the overlap and distinctions between the Verifiable Credentials and LER ecosystems.
• VCPlayground.org: This technology exploration platform originated from plugfests designed to connect issuers, wallet providers, and verifiers to test interoperability. Upgraded to support Verifiable Credentials 2.0 standards, the site showcases support for OpenID, VC-API, Credential Handler API (aka CHAPI), and more. It serves as a critical resource for purchasers of LER and VC technologies to vet products.

DHS’s leadership signals that verifiable credentials must prioritize user control, support selective disclosure, and ensure interoperability across tools adhering to established standards. This aligns with key principles embraced by the majority of LER ecosystem participants.

Second, this development foreshadows a surge in verifiable credential data issued under federal auspices. For example, capabilities enabling first responders to prove their identity at disaster sites without physical ID cards, or digital green card and work permit documentation, are expected to roll out. These Employment Records, historically slower to adopt LER standards than Educational Records, are now poised for rapid advancement.

When the federal government integrates Verifiable Credentials into its national security strategy, it sends a powerful message about the future trajectory of this technology.

This screenshot is from the Department of Homeland Security’s “Personal Credential Implementation Principles” and shows how the federal government is planning to include Verifiable Credentials with Permanent Resident Cards, Driver’s Licenses and more.

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7. Like brain cells connecting by forming synapses with each other the LER system is integrating and becoming smarter as a result

A verifiable claim issued to an individual as an open badge can be useful on its own. This is why badging has been a successful gamification strategy to motivate learners down pathways towards completion. But the true power of LERs come from the ability to bring a comprehensive set of verifiable data, backed by evidence, together to create a record that counts all learning, validates a skill profile, verifies work experience,  contains instantly verifiable aspects of identity, includes all relevant professional certifications and liceneses, and enables the individual to move this data between platforms to receive services and increase earnings.  In 2024 significantly moved the LER ecosystem forward towards this state by integrating systems together making it possible for individuals to compile more comprehensive LERs and move those LERs between different platforms. Each “cell”  that comes online and each “synapse” makes the LER ecosystem more capable and useful to learners and job seekers.

SkillsFWD served as a catalyst for many of these connections.  In Ohio, SchooLinks partnered with ASPYR Workforce Innovation to bring Comprehensive Learner Record Issuance into K12 programs of several school districes, provide students with a wallet, and make LER data exportable to a network of wallets through the Credential Handler API (CHAPI) service.

Arizona State University’s SkillsFWD project connected Open Badge Issuing Platforms, CLR Issuing Platforms, and Credential Wallets and Management Tools, to a LER-Resume Builder to enable students to pull their LERs together from multiple sources, shape those into a SmartResume, and set up their job and recruitment preference in the Sun Devil Talent Marketplace. This spring employers will join the marketplace to pilot LER hiring practices combined with bias-reduction tactics to test whether LER data can level the playing field for international students and students from disadvantaged backgrounds. This project brings together The Trusted Learner Network, ASU Pocket, Territorium, and SmartResume, enabling learners to seamlessly move their LERs between platforms. SkillsFWD projects in Alabama, Indiana, Pittsburgh, Montana, and Colorado are bringing together public and private LER technologies to create rich profiles that can be used to access opportunity.  

The synapses are also connecting on the Velocity Network where credentials are being issued across multiple categories, users are claiming those credentials in a wallet, and are using them in their job applications through the network. For example, Cisive, the world’s fourth largest background screening company, is inspecting records from wallets on the Velocity Network enabling learners to use their verifiable credentials to speed up the background check process. And Cisive is testing issuing a verifiable credential for claims they verify - a first.

Check out our predictions for 2026 to learn more about how the ecosystem’s increasing connections will unlock the next wave of value for learner/earners and employers.

As the LER systems “connects” through increasing integrations between LER platforms along with increase interoperability every LER gains in value

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8. The wait for employer adoption is over

The persistent question at Learning and Employment Record (LER) conferences over the past several years has been: “Where are the employers?” Skeptics have wondered whether the effort to equip individuals with LER data of their skills and qualifications is futile if employers aren’t explicitly asking for data in these formats. However, the evidence from 2024 provides a definitive answer: this concern is no longer valid. LER adoption is scaling at a rapid pace, and employers will inevitably adopt this technology as it becomes an integral part of the ecosystem.

Key Drivers of LER Adoption:

1. State-Led Initiatives: State governments are modernizing their educational infrastructure, unemployment systems, and job-matching tools to issue LERs at scale. Additionally, many states are integrating LERs into their hiring practices, driving adoption from the top down.
2. Workforce Development and Skills-Based Hiring: Organizations like Workforce Development Boards and the U.S. Chamber of Commerce Foundation are actively training employers on skills-based hiring practices, including how to leverage LERs in their decision-making processes.
3. Federal Adoption of Verifiable Credential Technology: The Department of Homeland Security is preparing for widespread adoption of verifiable claim technology, particularly for documents that employers are legally required to verify during the hiring process. This demonstrates a clear federal commitment to scaling LER adoption.
4. Growth of Credential Platforms: Issuing technology platforms and credential wallets are expanding rapidly. The credential management category has seen significant evolution within just a year, signaling robust momentum.
5. Global Phenomenon of Digital Wallets: Digital wallets and credential management are accelerating globally, particularly in sectors like personal finance. This mainstream adoption is setting the stage for similar growth in the LER ecosystem, as principles of verifiable data transfer gain wider acceptance.
6. Importance of Verifiable Credentials in an AI-Driven World: In a world increasingly driven by AI, where financial and identity fraud are rampant, verifiable credentials are viewed as a critical safeguard. Their value extends far beyond recruitment, emphasizing their importance in the broader digital economy.
7. Scaling Issuance Volumes: Accredible, a leading credentialing platform, exemplifies the scale of growth. In June 2024, they celebrated their 100 millionth credential, and by year’s end, they reached 125 million. This acceleration underscores the increasing demand and issuance of verifiable credentials.
8. Higher Education Momentum: While higher education’s credentialing volume has not yet peaked, dozens of institutions expanded their LER infrastructure in 2024. Plans for 2025 point to a substantial increase in the issuance of LER credentials, further cementing LER’s place in the ecosystem.
9. The Broader Wave of Digitization: A widespread shift toward digitization is happening across industries. As digital data grows, it’s highly likely that a significant portion will be issued in verifiable formats, enabling individuals to use this data in myriad ways beyond job searches.

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The convergence of these trends leaves no room for doubt: LER adoption is marching forward. Public and private sectors are aligning, and individuals are becoming equipped with verifiable data that employers will integrate into their systems, whether they’re prepared for it or not. Employer adoption is as inevitable as large-scale public adoption, and the time for questioning this trajectory has passed.

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