By Dr. K.L. Allen, Regional Vice President, Western Governors University

Pennsylvania’s workforce is being reshaped in real time, as rapid developments in artificial intelligence are changing not only how work gets done, but who gets hired to do it. That shift is already playing out in cities like Philadelphia.

New data from Western Governors University’s annual Workforce Decoded survey shows nearly three-quarters of employers in the state say AI is changing the type of candidates they hire, while 41% assess candidates’ AI capabilities through real-world experience using tools like ChatGPT or machine learning libraries. Others rely on technical interviews, certifications, or applied assessments. 

Taken together, these changes redefine what it means to be “job-ready,” creating both a challenge and an opportunity for Philadelphia. While 66% of employers still say degrees are important, nearly a third now view degrees and experience as equally valuable, and an overwhelming 85% see certificates as strong signals of job readiness. Hiring is no longer about choosing between degrees or skills, but about evaluating a broader portfolio of skills and experience.

In Philadelphia, where demand for skilled talent is growing across sectors, including life sciences and biotech, this shift carries particular weight. It signals that employers are increasingly open to multiple pathways into good jobs, but questions remain about access.

Yet even as employers grow more open to how candidates demonstrate readiness, a new challenge is emerging. Entry-level opportunities are beginning to narrow. According to ADP, securing a first job has become increasingly difficult for new college graduates in the Philadelphia metro area, largely due to the adoption of AI.

For first-generation college students, career switchers, and many urban residents, that first job has traditionally been a critical on-ramp to economic mobility. If that on-ramp narrows, access to opportunity narrows with it, not because talent is lacking, but because pathways are.

Philadelphia cannot afford that outcome, particularly given the city’s sizable adult learner opportunity: over 150,000 Philadelphians age 25 and older have some college credit but no degree. At the same time, as employers seek skilled talent, many of these adult learners remain an untapped pipeline.

To fully unlock the city’s economic potential, we must expand accessible pathways into career-ready skills. That means rethinking how education and workforce systems intersect.

One approach is competency-based education, which focuses on what learners can demonstrate rather than how much time they spend in a classroom. Students progress by proving mastery of specific skills and competencies, often moving more quickly through areas where they already have experience, while dedicating more time to areas where they need growth. This model is particularly well-suited for today’s learners – especially adult learners and those seeking a career switch, who may be balancing work and family responsibilities alongside their education.

Equally important is strengthening the connection between education and employers. Higher education must move at the pace of the labor market, working directly with industry to define in-demand skills and design programs that reflect real-world needs. In practice, this can look like universities partnering with employers to co-develop curriculum, embed industry-recognized certifications, and expand work-based learning opportunities like apprenticeships.

At Western Governors University, for example, this includes collaborating with employers to align curriculum with workforce needs and create more flexible pathways for learners. These efforts help ensure that what students learn reflects what employers are actually seeking, while allowing learners to gain credit for competencies developed on the job.

By bringing education closer to the workplace, we can create more flexible pathways that help individuals build skills, advance their careers, and meet the evolving needs of Philadelphia’s economy, particularly in sectors like healthcare, construction and logistics, and technology that are facing skilled labor shortages.  

The workforce transformation underway in Philadelphia is accelerating. The question is not whether hiring practices will change – the data shows they already have. The real question is whether our education and workforce systems will keep pace in a way that expands opportunity rather than limits it.

If we get this right, Philadelphia can lead in building a skills-based workforce where talent is recognized and pathways into good jobs are clear and accessible.