As industries transform at unprecedented speed, traditional pathways to employment are being redefined. The global workforce is moving from degree-centric hiring to a skills-first approach, prioritizing demonstrable capabilities over academic credentials. This shift isn’t just a trend; it’s a strategic response to rapid technological change, evolving job market demands and growing recognition that conventional education alone may not fully prepare students for the real world.
The Micro-Credentials Impact Report 2025 highlights the rising role of micro-credentials in reshaping how individuals learn and how employers hire. Drawing insights from learners and employers across six regions, the report reveals accelerating global momentum behind skills-based education.
Saudi Arabia is emerging as a leader in this global shift. With 98 percent of employers in the Kingdom adopting skills-based hiring practices, the country is clearly moving away from traditional models. As the region’s largest economy advances its ambitious Saudi Vision 2030 agenda, the need for a workforce that can adapt and contribute across emerging sectors has never been greater. At the heart of this transformation is a powerful enabler: micro-credentials.
Bridging the skills gap
Micro-credentials are becoming essential in closing the gap between education and employment. These short, targeted programs help learners build in-demand, job-relevant skills in weeks or months, not years. Unlike traditional degrees that can take time to evolve, micro-credentials are designed to stay aligned with the fast-changing industry needs.
Consider the surge in demand for Generative AI (GenAI) skills. As AI technologies accelerate, employers across Saudi Arabia are actively seeking talent with expertise in this field. Micro-credentials allow learners to build this knowledge quickly, making them more competitive in a dynamic job market. This responsiveness is precisely why employers are placing greater value on micro-credentials.
Greater value for micro-credential holders
The benefits of micro-credentials extend far beyond job placement. In Saudi Arabia, 97 percent of employers say they are willing to offer higher starting salaries to candidates with recognized or credit-bearing micro-credentials. Nearly all employers (96 percent) agree these credentials enhance a candidate’s profile, and 84 percent report hiring at least one micro-credential holder in the past year.
In the Middle East and North Africa (MENA) region, 92 percent of employers believe entry-level employees with micro-credentials demonstrate stronger capabilities in areas such as problem-solving and communication, skills consistently ranked as critical in today’s workplace. Additionally, 94 percent agree that these individuals possess immediately applicable skills, enabling them to hit the ground running from day one. In Saudi Arabia specifically, Resilience and Adaptability emerged as the top everyday skills employers value most in micro-credential holders. For employers, this translates into a more productive and agile workforce, one that’s well equipped to meet the demands of a changing economy.
The role of universities
This shift also presents an opportunity for universities to adapt. While traditional degrees remain important, they must be complemented with flexible, industry-aligned learning pathways. Universities can enhance their value proposition by embedding micro-credentials into their curricula, especially in fields like AI, data analytics, cybersecurity and digital marketing, where demand is surging.
The impact is clear. Research shows students are twice as likely to remain engaged and 2.4 times more likely to enroll in degree programs that include credit-bearing micro-credentials. Nearly 9 in 10 higher education leaders say micro-credentials boost student satisfaction and engagement, and 75 percent believe they drive enrollment.
A workforce transformation imperative
The urgency of workforce transformation is increasing. According to the World Economic Forum’s Future of Jobs Report 2023, 61 percent of workers globally will need retraining by 2027, highlighting the growing demand for scalable reskilling approaches. To address this, employers are turning to skills-first hiring and micro-credentials as flexible, inclusive solutions. These models open up accelerated pathways to new careers for job seekers while helping companies diversify and strengthen their talent pipelines.
By focusing on capabilities over credentials, skills-based learning helps align workforce readiness with the needs of the modern economy, promoting a more adaptable and inclusive workforce for the future.
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A new era of work and learning
With rapid advancements in technology redefining work and learning, micro-credentials offer a timely, effective solution for bridging the gap between education and employment. They empower individuals to take ownership of their careers and provide employers with a reliable way to identify skilled, job-ready talent. Governments can further accelerate progress by integrating micro-credentials into workforce development initiatives.
In Saudi Arabia, the implications are far-reaching. As the Kingdom continues to diversify its development strategy and invest in high-growth sectors, micro-credentials will play a pivotal role in cultivating a skilled, future-ready workforce. As we navigate this new era, one thing is clear: the ability to learn, unlearn, and relearn will define success. Micro-credentials aren’t just a response to this new reality; they’re the catalyst driving it.
Kais Zribi is Coursera’s General Manager for the Middle East and Africa
