Key insights and market outlook
Recent graduates in Indonesia face significant challenges in securing employment, with many forced into freelance or odd jobs despite participating in government training programs like Prakerja. The main obstacles include stringent job requirements such as experience and age limits, creating a mismatch between graduates' skills and employer expectations. This situation highlights the need for better alignment between education, training programs, and labor market needs.
Recent graduates in Indonesia are experiencing extended periods of unemployment despite participating in government initiatives like the Prakerja program. The program, designed to enhance employability through training and certification, has not been sufficient to secure permanent employment for many participants. Graduates like Vian (25) have attended various training sessions and obtained certifications but continue to face significant challenges in the job market 1
The primary obstacles include stringent job requirements such as prior experience and age limits, which are often considered excessive for fresh graduates. This creates a paradox where employers demand experience for entry-level positions, yet graduates struggle to gain that experience. As a result, many are forced into freelance or temporary work, such as event staffing, which doesn't require specific qualifications or experience 2
The situation highlights a significant mismatch between education/training and labor market needs. While programs like Prakerja help enhance skills, they often fail to translate into tangible job opportunities. This disconnect between the supply of skilled graduates and employer demands continues to be a critical issue in Indonesia's labor market.
The prolonged unemployment among graduates not only affects individual livelihoods but also has broader economic implications. It represents a underutilization of human capital and can lead to skill degradation over time. Addressing this issue requires a multi-faceted approach involving education reform, industry collaboration, and targeted government policies.
Graduate Unemployment Persistence
Government Training Program Evaluation
Labor Market Mismatch Analysis