Japan Plans to Cut at Least 250 Private Universities Due to Declining Birthrate

Due to a declining birthrate, about half of Japan's private universities are not attracting enough students. The Ministry of Finance has proposed a numerical target for the first time, aiming to eliminate at least 250 private universities and reduce student enrollment slots by approximately 140,000 by 2040. The Ministry of Education, Culture, Sports, Science and Technology (MEXT) views the adjustment of private school scale as inevitable, with future focus on which academic fields and regions will see schools close. The Ministry of Finance's proposal, presented on April 23rd, targets a reduction of 250 institutions, which is about 40% of the 624 private universities in Japan as of 2024. The number of 18-year-olds has fallen from 2.05 million in 1992 to 1.09 million in 2024. During this period, private universities increased by 1.6 times to 384 institutions. A survey last year showed 53% of private universities did not meet enrollment targets. The Ministry of Finance cited examples of courses at under-enrolled universities covering basic elementary school material, questioning educational quality and the justification for subsidies. MEXT Minister Masamoto Yohei stated on April 24th that the decision would not be mechanical and that balancing fields and regions is important. MEXT's response indicated a need to maintain universities that cultivate talent for regional industries, healthcare, welfare, and social infrastructure. However, a MEXT official admitted that reducing private universities is unavoidable. MEXT plans to use subsidy allocation to support universities adapting to growth areas like AI and semiconductors, and those meeting local talent needs, thereby encouraging the exit of struggling institutions.