Japan Education Microcredentials

The Japanese market for microcredentials (MCs) is poised for significant growth, creating business opportunities for U.S. higher education institutions and online learning platforms. As Japan advances its Digital Transformation (DX) arc — a national initiative to integrate digital technologies across all sectors, including business, government, healthcare, and education — organizations are striving to become more agile, innovative, and data-driven in their decision-making. This transformation is driving demand for specialized skills, particularly in information technology subject matter.

Valued at $300 million, Japan’s “recurrent education” adult learning and reskilling market is expanding in response to demographic pressures that include a declining birthrate and shrinking workforce. The Ministry of Economy, Trade and Industry (METI) has emphasized the need to modernize workforces and systems to avoid economic losses, further fueling demand for upskilling and reskilling programs. Mid-career and senior employees increasingly need to update their skills as their organizations work to digitize, become more operationally efficient, and improve customer experience. Employers are shifting toward practical learning approaches, prioritizing short-term, modular certifications that demonstrate specific knowledge and skills over traditional degrees.

The Rise of Microcredentials (MCs)
MCs are certifications that recognize proficiency or competence in specific skills or subject areas. Unlike traditional degrees, MCs focus on niche areas of study and can be earned in weeks or months rather than years. Offered by universities, professional organizations, and online learning platforms, MCs are typically delivered virtually, though some universities provide in-person and hybrid formats. In some cases, MCs can be combined toward larger qualifications, such as certificates or degrees. MCs enable students and professionals to quickly improve their skills, making them particularly valuable in fast-evolving industries.

In Japan, several organizations and initiatives are driving the adoption of MCs. Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT) launched the Japan Virtual (JV)-Campus, an online education platform offering courses, videos, and other learning content from various Japanese universities and institutions.  Additionally, the Japan Massive Open Online Education Promotion Council (JMOOC) is interested in offering microcredential courses from U.S. institutions that hold JMOOC membership and have courses approved by the JMOOC Certification Committee.  In April 2024, JV-Campus and JMOOC formed a “Joint Working Group on MCs” and published Japan’s first framework and guidelines for microcredentials, which are compatible with international standards and OpenBadges 3.0, the latest standard for digitally certifying learning and skills.  They plan to establish the “Japan MCs Organization” in September 2025 to further promote microcredentials and public engagement.

Since 2023, the Japanese Society for Engineering Education has been issuing microcredentials to participants in its skills development programs. Cyber University, a fully online private Japanese university, allows students to combine multiple microcredentials to earn a bachelor’s degree in information technology and business. This model serves as an example for traditional Japanese universities to consider integrating microcredential programs into their curricula. Keidanren, Japan’s Business Federation, has proposed that universities and private educational providers promote the visualization of learning outcomes, including the use of microcredentials to better demonstrate what students have learned.  This aligns with Keidanren’s broader goal of fostering a workforce with strong information and computer literacy, adaptable to the evolving demands of the Japanese economy.

U.S. higher education institutions can capitalize on the growing demand for microcredentials in Japan by offering hybrid microcredential courses that cater to diverse learning preferences, combining online and in-person formats, classroom-style and self-paced courses. Institutions should focus on high-demand fields such as AI, Digital Science, IoT, and other technical subjects that align with Japan’s workforce needs. Utilizing OpenBadges 3.0 for digital certification can enhance the credibility and portability of microcredentials, while applying for approval from JMOOC can facilitate access to Japan’s microcredential market.

The microcredential market in Japan offers significant opportunities for U.S. institutions to expand their reach and contribute to workforce development. By aligning with local frameworks, addressing language barriers, and focusing on high-demand skills, U.S. institutions can play a pivotal role in shaping the future of education and workforce readiness in Japan.  For more information on the Japanese microcredential market, please contact the U.S. Commercial Service at Office.Tokyo@trade.gov.