Microcredentials hold promise for connecting people's skillsets with labour market demand in a rapidly changing world of work. They have proliferated in recent years across economic sectors and education levels, reinforcing European and national efforts to understand and develop them better. They can increase the provision of labour-market-relevant vocational education and training (VET), supporting national, regional and sectoral upskilling and reskilling strategies, offering learners targeted training for better employment prospects, and helping employers improve employee retention and productivity. They support the modularisation of qualifications and the validation of prior learning, enabling the inclusion of the most vulnerable and lifelong learning at all levels.