Micro-credentials are short modules that focus on specific practical skills, meeting employer demands and moving people into the workforce quickly. There was an astonishing 95% increase in the availability of micro-credentials between 2021 and 2022. US students say they are 74% more likely to enroll in a degree program that offers industry micro-credentials.
Many people see this development as essential for upskilling the workforce, driving the economy forward and widening access in education. Others see it simply as a new phase in the privatization and marketization of higher ed, destroying the integrity of the sector. Let’s analyze the causes behind the recent success of micro-credentials, the challenges they present and how to leverage them for the benefit of students, employers and institutions.
The American workforce and the traditional college-age student population are both shrinking while the demand for labor in the U.S. continues to grow. According to the US Chamber of Commerce, the number of workers dropped by 3 million from 2020 to 2022, whereas the US economy reported an increase of 4.8 million jobs. With more than half of the U.S. population aged 25 or older without a bachelor’s degree, the country is simply unable to fill jobs with the skilled workers it needs. Micro-credentials are bridging the gap, driving industry collaboration, reducing the cost of skills attainment and accessing an all important market of adult learners.
In part, the scale of the micro-credentials boom has been made possible by the disruptive effects of the pandemic – universities and colleges have needed to develop the infrastructure for flexibility and online provision, catering to people’s different learning needs outside of the traditional four-year degree. That said, higher education institutions aren’t necessarily at the forefront of the micro-credentials industry.
The micro-credentials market is growing even faster outside of higher ed – providers such as LinkedIn, IBM, Cousera and other professional associations aren’t just riding the micro-credentials wave, but leading the boom.
You might argue that micro-credentials aren’t particularly lucrative for colleges, so who cares if they become something for these ‘third-parties’? Nor can these programs compete with the depth of study and ‘social capital’ a traditional degree offers – surely their quick, transactional structure doesn’t hold more value to employers? The reality is, as the enrollment crisis of recent years has demonstrated, institutions can no longer rely on high school grads to choose costly four-year-degrees at the scale and consistency they used to. Secondly, employers need skilled workers to fill vacancies, and micro-credentials will increasingly become standard markers of eligibility. Thirdly, there is nothing to be frightened of – embrace the challenge. If delivered correctly, micro-credentials will enrich and expand your institution’s offering.
