The Impact of High Job Qualification Standards on Unemployment Rates Among Fresh Graduates in Indonesia

Abstract

This study aims to identify and analyze the main challenges faced by new graduates in Indonesia in entering the job market, focusing on the high job qualification standards that often do not align with the skills possessed by graduates. Data from the Central Statistics Agency (BPS) in 2023 shows that the open unemployment rate for university graduates is 5.34%, higher than the national average of 4.86%. Only 53% of university graduates work according to their field of study, while 40% of employers feel that new graduates lack the necessary competencies. A descriptive qualitative method was used, with primary data from in-depth interviews and focus group discussions, as well as secondary data from BPS and related institutions. The analysis indicates a significant gap between the higher education curriculum and the job market requirements, and the high qualification standards of companies. This study recommends updating the higher education curriculum to better align with job market needs, increasing internship and job training programs to provide practical experience, enhancing career development services on campus, providing incentives for companies that recruit new graduates, and implementing regular policy monitoring and evaluation to ensure continuous improvement. These measures are expected to not only reduce the unemployment rate of new graduates but also support sustainable economic growth in Indonesia.