I didn't realize this. I've always read so much about the training and certification instructors go through. I have never bothered to check the qualifications of the instructors at any given place where I've taken a lesson. Good to know!
It's a bit odd. As I remember, someone who is going to take the PSIA Level 1 Exam has to have a ski school connection. Quite a while ago another Diva asked the question on another ski forum with lots of instructors whether or not having a higher level PSIA certification meant higher pay or any other advantages. Between her questions and mine, we learned a lot about the reasons some people don't think pursuing PSIA certification is worthwhile but others think it is a good idea. Per usual, there is no right answer. It just depends on the situation.
After that discussion, I paid more attention to discussions about PSIA exams. While I won't ask an instructor at the start what PSIA level they are, I usually find a way to learn the answer before we part company.
It took a while for me to have enough lessons with Level 2 and Level 3 instructors to get a sense of the difference. I've worked with about twenty L3 instructors at assorted locations in the past decade. Some I requested by name because of a recommendation, others were random assignments. I've worked with a few L2 instructors with 10+ years of experience in more than one location. I've got favorite instructors at my home mountain, Massanutten, and at my favorite resorts out west.
A Level 2 instructor who has been teaching for 15+ years can be very effective as a teacher if the chemistry is good. I've worked with L2 instructors who I'm happy to work with again. There can be many reasons that pushing on to do what's required to train for and pass the teaching and skiing exams for Level 3 doesn't happen. Even someone who ends up working as a ski instructor for a major part of their adult life.
However, my sense of Level 3 instructors is that they are continually thinking about the teaching aspect of the job. Doesn't matter if a L3 instructor has been teaching for 30 years, they are still trying to figure out the best way to teach an advanced beginner or intermediate fundamental skills. Or how to teach an instructor how to teach fundamentals. They are often practicing fundamentals when they are free skiing on a groomer. I always learn a lot from a L3 instructor, even if it's a situation when I'm lucky enough to go free skiing with one for a few runs.
In Canada, the basic certification is a requirement to be considered for an instructor job.