Japan's finance ministry said in May 2026 that 250 universities across the country are likely to be closed or merged as Japan's birth rate keeps falling and the pool of students shrinks. [1]

The 250 institutions account for about 40% of Japan's 624 private higher education institutions, the ministry said. [1] University insiders say Japan has too many small private universities that are struggling with enrolment and finances. [1]

The pressure has built even as the education ministry approved several new universities in the past decade, despite the declining birth rate. Makoto Watanabe, a professor at Hokkaido Bunkyo University, said: "The number of universities they are talking about shutting or merging is quite a shock, and it will be a concern for anyone in education." [1]

Watanabe also said the education ministry bears some responsibility because it approved new universities while the number of children was already falling. He added: "The issue of the nation’s birth rate is not new, so why did the bureaucrats who are now planning to close private universities approve the opening of others?" [1]

The finance ministry's report is the latest warning over a higher education system shaped by a long decline in births and a smaller generation of prospective students. [1]