The Impact of Education Level on Unemployment

Abstract

Unemployment is still a major challenge for economic development in Indonesia. Although education is believed to be one of the main solutions in reducing the unemployment rate, the reality is that many secondary and higher education graduates have not been able to be absorbed by the job market. This is due to the mismatch between the competencies of graduates and the needs of the industry that continues to grow. Education that is too theoretical and lacks practice is the main obstacle in producing a ready-to-use workforce. As a solution, vocational education is considered more effective in preparing graduates who are in accordance with the demands of the world of work. With a practical skills-based approach and cooperation with the industrial world, vocational education is able to bridge the gap between education and employment. Therefore, education reform is needed that not only increases access, but also quality and relevance in order to be able to reduce the unemployment rate in a sustainable manner.