By Rick Benbow | Thoughts on Innovation
If you’re job hunting in the Southwest area, here’s something you need to know: employers are looking at more than your resume.
According to a new regional analysis from Western Governors University (WGU)’s Workforce Decoded: 2025–2026 Annual Report, based on responses from 113 employers across the Southwest, hiring professionals are widening the range of signals they trust when identifying job-ready candidates. The findings offer a window into what’s happening in our own backyard – and what it means for anyone hiring or looking for work in the Southwest.
Here’s what local employers told us:
Here’s what local employers told us:
*Confidence in workforce experience and the perceived value of degrees rise together. Employers are not trading one signal for another; they are building a wider readiness portfolio where degrees, credentials, and competencies collectively strengthen hiring decisions.
*In the Southwest, 67% of employers say a college degree remains important when evaluating job candidates, and 42% say a degree carries the same weight as practical experience. At the same time, professional certificates are also seen as meaningful signals of readiness, with 89% of employers describing them as valuable when making hiring decisions.
*Together, these responses indicate that many employers are not replacing one pathway with another but instead looking for multiple ways to gauge whether a job candidate is prepared to succeed.
*Southwest employers are using various methods to evaluate a candidate’s AI skills. According to the report, 45% of employers say they assess candidates based on real-world experience using AI tools such as ChatGPT, Copilot, Python or machine learning platforms. Another 31% incorporate technical interviews or job-related assessments that measure AI skills, while 27% say they look for formal certificates related to artificial intelligence. As AI becomes more integrated into everyday work, familiarity with these tools is increasingly viewed as necessary.
As AI reshapes the economy, it is already influencing hiring decisions. In the Southwest, 78% of employers say the technology has changed the kind of applicant they are seeking. Many report stronger demand for experienced professionals, with 44% identifying mid-level employees with five to ten years of experience as the most in demand within their organizations. At the same time, 39% say they are reducing entry-level hiring due to AI. However, nationally, this trend was most pronounced in the information & technology and finance & professional services sectors.
The bottom line? The Southwest job market is changing, but opportunity is still there. If you’re job hunting, focus on building a well-rounded profile: education, hands-on experience, and real technical skills. If you’re hiring, be clear about what skills you actually need, not just what the job description has always said.
Editor’s Note: Rick Benbow is the regional vice president of the Western Governors University
