Digital Wallets and the Future of Workforce

As the workforce development landscape continues to evolve with new technologies such as Learning and Employment Records (LERs) and Digital Wallets, staying competitive requires workforce players to not only embrace these tools but also understand their impact on the future of work. To help us navigate the changes and complexities, we sat down with Kathy Mannes, the senior advisor at Jobs for the Future (JFF). Drawing from her vast experience in educational and employment needs and her work at the U.S. Department of Labor, Kathy offers valuable insights on balancing human and technical skills, the role of apprenticeships, and how these emerging technologies are transforming career development.

Q1: How are workforce needs evolving with the rise of automation and new technologies?

Kathy: “It’s fascinating these days to think about how we’re going to balance the need for more human skills as we become more automated,” Kathy begins. She stresses that though technologies for workforce ecosystems are advancing quickly,  job seekers and learners must carry technical and essential "human skills" like problem-solving and adaptability.

“We’re going to be more skills-based in terms of our hiring and credentialing,” she adds. The shift toward this approach brings tools like digital wallets and LERs to the forefront, allowing workers to showcase verified credentials in a central digital format.

“Digital Wallets, for example, securely store an individual’s credentials, including certifications, licenses, and even medical records,” she notes. These tools make it easy for individuals to share their credentials with employers, schools, training providers, and more. “This balance between human and technical skills, supported by new technologies, will drive workforce success in the future,” she says.

Q2: How do apprenticeships fit into a broader framework for workforce development?

Kathy: “A registered apprenticeship should be the gold standard,” Kathy explains. “But what about silver or bronze?” She highlights the value of having multiple career pathways, including internships and workplace learning programs, which all help build skills and credentials.

These programs flow into broader talent pipelines by connecting young people to future opportunities after high school, ensuring a smooth transition from education to employment. Apprenticeships are critical in this framework, providing structured, hands-on experience to prepare job seekers and learners for jobs. 

Learning and Employment Records (LERs) further enhance this by consolidating credentials from apprenticeships, internships, and formal education into a single, verified digital document. As Kathy suggests, this streamlines how credentials are stored and shared, making it easier for employers and employees to manage and access skills data. By integrating apprenticeships into LERs, they become part of a cohesive system where all career pathways—gold, silver, or bronze—contribute to a skilled, adaptable workforce.

Q3: The future of work is unpredictable, with many jobs evolving or disappearing altogether. What strategies do you believe are most effective for preparing individuals to succeed in such an uncertain job market?

Kathy: “We are training people for jobs that don’t exist or jobs that are changing moment by moment,” Kathy says. The key to preparing for the unknown? “Teach people flexible skills,” she explains. Technologies like LERs are crucial for this, as they provide a way to track and showcase skills that are continuously being updated. “They need to look at career pathing as building skill sets, rather than just attaining a credential,” Kathy emphasizes.

With LERs, individuals can easily update their records to reflect new skills as they acquire them, keeping them agile in a fast-changing labor market. “The world is changing quickly, and so must our approach to training people for jobs,” Kathy adds.

Q4: Today’s job market is competitive, how do you think workers can build a career strategy that is not only sustainable but also adaptable to the future? 

Kathy: “Credentials should build on themselves. They stack up,” she explains. This is where technologies like LERs shine, allowing individuals to seamlessly gather all their credentials in one place, from technical certifications to professional development courses, and share them with potential employers.

“We shouldn’t think about career pathing as Jenga, where you pull something out and everything falls,” she points out. Instead, each credential should add value, helping workers grow and adapt to the ever-evolving workforce. “It’s about building on what you know and learned, all the while being ready for the next opportunity,” she says.

Q5: Emerging technologies like Digital Wallets and LERs are gaining traction in workforce ecosystems because they offer new opportunities and benefits. However, there’s still some hesitation in moving away from traditional methods. Should we be trying new approaches to workforce development?

Kathy: “We should NOT be afraid to try different things,” Kathy encourages. One of the most exciting new approaches is how digital technologies, such as Digital Wallets, transform workforce development. “Digital Wallets securely store an individual’s information—everything from credentials to personal records—and allow them to connect with key partners like employers and schools,” Kathy explains.

This technology makes it easier for individuals to explore career paths and engage with learning opportunities. “We need to use tools like Digital Wallets to help individuals build more flexible and dynamic career paths that keep them competitive in a fast-changing world,” Kathy advises.

Q6: How should job seekers and learners approach their unique path to meaningful employment when considering lifelong career growth?

Kathy: Kathy shares an insightful analogy for career development: “Those of us that worked early on in developing skill standards for industries thought of this as a tree. What is the mulch? What is the trunk? What are the branches?” In other words, career paths aren’t linear; they’re ever-growing, with foundational skills forming the roots, trunk,  new experiences and learning opportunities creating the branches and leaves.

“An LER lets you build and add onto your credentials over time, rather than having them scattered in different places,” she explains. This way, individuals can grow their career path flexibly, always ready to add new skills as the world changes. “It’s not a straight and narrow path, but everything you learn will help you build a stronger future,” Kathy adds.

Q7: Workforce players have long collaborated on various initiatives. Given that partnerships are essential for the success of workforce projects, what should organizations prioritize when recruiting and inviting new partners to the table?

Kathy: “We need partners that are purpose-focused, not product-focused,” Kathy says, emphasizing the importance of collaboration in workforce development. “ Organizations that prioritize building opportunities for individuals rather than simply pushing products are crucial in shaping a more inclusive and effective workforce ecosystem.

“Digital Wallets, LERs, and partnerships that focus on the greater good are key,” Kathy says, highlighting how these technologies and collaborations create an ecosystem that benefits individuals, employers, and communities alike. “That’s the kind of partnership we need to move forward,” she concludes.

Our conversation with Kathy Mannes highlighted the innovative future of workforce development with the right approach. Balancing human and technical skills, embracing technologies like Digital Wallets and LERs, and creating meaningful partnerships are essential to fill talent pipelines. She eloquently told us, “The only way to deal with the future, which we cannot predict, is to keep learning.” Embracing emerging technologies and inevitable changes will drive the future of work and empower future workers and learners.