244 JTUS, Vol. 02, No. 4 April 2024
JTUS, Vol. 02, No. 4 April 2024
E-ISSN: 2984-7435, P-ISSN: 2984-7427
DOI: https://doi.org/10.58631/jtus.v2i4.109
The Impact of High Job Qualification Standards on
Unemployment Rates Among Fresh Graduates in Indonesia
Adelia Azzahra
1*
, Septien Dwi Savandha
2
, R. Mahendra Haryo Bharoto
3
, Nzoussi Hilaire Kevin
4
1,2,3
Swadaya Gunung Jati University, Cirebon, West Java, Indonesia
4
China University of Geosciences, Wuhan, China
Email: [email protected]
1
*, dwisavandha[email protected]
2
, har[email protected]
3
,
nzoussihil[email protected]
4
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.
Keywords: Fresh Graduates, Job Market, Job Qualification Standards, Unemployment.
INTRODUCTION
In the midst of the era of globalization and rapid economic dynamics, new graduates in
Indonesia are faced with the main challenge, namely high standards of job qualifications, often
not in line with the skills they have (Rijal et al., 2022; Wang et al., 2022). Data from the Central
Statistics Agency (BPS) shows that the open unemployment rate for university graduates will reach
5.34% in 2023, exceeding the national average of 4.86%. This phenomenon is one of the main
causes of the high unemployment rate among new graduates.
The Impact of High Job Qualification Standards on Unemployment Rates Among Fresh
Graduates in Indonesia
245 JTUS, Vol. 02, No. 4 April 2024
Indonesia, like other developing countries, experiences a significant gap between the job
qualification requirements demanded by the labor market and the qualifications possessed by
university graduates (Ariansyah et al., 2024; Tentua & Winarko, 2020). A study from the World
Bank in 2022 shows that only 53% of university graduates in Indonesia work according to their
field of study (Haryono et al., 2023). In addition, research by the Ministry of Education and Culture
in 2021 revealed that 40% of entrepreneurs feel that new graduates do not have the required
competencies.
One of the problems of concern in Indonesia is the inconsistency of high job qualification
standards with the competencies possessed by new graduates (Nugroho et al., 2024). Many
companies apply strict requirements for job positions, such as minimal academic grades, extensive
work experience, or specific skills that are difficult to find in recent graduates (Hidayat et al., 2021).
On the other hand, new graduates often do not have the required competencies adequately
(Deffinika et al., 2021). This gap contributes to the high unemployment rate among recent
graduates in Indonesia.
This problem is increasingly urgent to address immediately, given the significant economic
and social impact of unemployment among new graduates (Azzahra et al., 2024). The inability of
recent graduates to get a job according to their qualifications can hinder economic growth and
increase social instability in Indonesia (Indrawati & Kuncoro, 2021). Unemployed new graduates
will have difficulty meeting their economic needs, and this can trigger social problems such as
poverty, crime, and dissatisfaction with the government (Lima et al., 2021). Therefore, immediate
efforts are needed to harmonize job qualification standards and graduate competencies in order
to create more suitable jobs for the young generation of Indonesia (Sagita et al., 2020).
Previous studies have shown several factors that affect the unemployment rate among new
graduates in Indonesia. Rahman (2021) found that new graduates face fierce competition in
entering the world of work, with the percentage of unemployment of graduates in the previous
year higher than graduates in the previous 3 years. In addition, the types of jobs that are most
widely engaged by new graduates are laborers and entrepreneurs, showing a lack of compatibility
between qualifications and the needs of the job market.
Meanwhile, Sitompul (2023) analyzed the determinants of unemployment of young
educated workers in Indonesia. The results of the study show that those who are highly educated,
have work experience, and major in IT have a greater probability of getting a job. However,
individuals living in urban areas tend to have a lower probability. This shows the need to improve
the quality of human resources through education and training so that new graduates can
compete in the job market and have equitable investment distribution throughout Indonesia.
Based on the findings of previous studies, the novelty that can be contributed to this study
is to analyze, more specifically, the impact of high job qualification standards on the
unemployment rate of new graduates. This study will delve deeper into how highly qualified
recruitment policies and practices in Indonesian companies affect the ability of recent graduates
Adelia Azzahra, Septien Dwi Savandha, R. Mahendra Haryo Bharoto, Nzoussi Hilaire Kevin
246 JTUS, Vol. 02, No. 4 April 2024
to get jobs, as well as their implications for unemployment rates among them (Liu-Farrer & Shire,
2023; Pritadrajati et al., 2021).
This study aims to analyze how high employment qualification standards affect the overall
dynamics of unemployment in Indonesia, with a focus on a deeper understanding of the factors
that contribute to the problem of unemployment among new graduates in Indonesia. This
research is expected to provide new insights and practical recommendations to address these
issues and provide valuable input for policymakers and stakeholders in designing effective
strategies to align graduate qualifications with labour market needs. In the end, the results of this
research are expected to contribute to increasing the absorption of new graduates and sustainable
economic growth in Indonesia.
METHODS
This study employs a qualitative method with a descriptive approach to explore the
experiences and perceptions of new graduates in Indonesia who have not yet found a job after
graduating from university in 2023. Primary data is collected through in-depth interviews and
focus group discussions (FGD) with 20-30 respondents for interviews and 3-5 groups for FGD,
each consisting of 5-7 people. Purposive sampling is used to select respondents based on specific
criteria, such as graduates from 2023 who are still unemployed, along with snowball sampling to
find additional relevant respondents. Secondary data is obtained from the Central Statistics
Agency (BPS) and other related institutions. Data analysis is conducted through thematic analysis,
involving transcription, coding, theme grouping, and in-depth analysis to identify patterns and
relationships between themes. The findings are validated through data triangulation, member
checking, and peer debriefing to ensure consistency and accuracy (CohenMiller et al., 2022).
This research also considers ethical aspects by obtaining informed consent from all
respondents and maintaining the confidentiality of their personal information. Respondents are
informed about the study's purpose, procedures, and their right to withdraw at any time. While
this study provides deep insights into the factors affecting the unemployment rate among new
graduates in Indonesia, there are limitations to be noted. These include potential bias from
purposive sampling and the limited generalizability of the findings to a broader population.
Despite these limitations, this approach aims to offer targeted recommendations for policies that
support the alignment of graduate qualifications with labor market needs.
RESULTS AND DISCUSSION
Statistics on Unemployment Among Recent Graduates
Based on BPS data in 2023, the unemployment situation among new graduates in Indonesia
shows several significant trends. The open unemployment rate for university graduates reached
5.34%, exceeding the national average of 4.86%. This indicates that college graduates face greater
challenges in finding jobs compared to the general population. In addition, the data also revealed
The Impact of High Job Qualification Standards on Unemployment Rates Among Fresh
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247 JTUS, Vol. 02, No. 4 April 2024
that around 2.6 million university graduates had not managed to enter the job market in the same
year.
Table 1. Statistics on Unemployment in College Fresh Graduates
Category
Numbers/Levels
Open Unemployment Rate
5.34% (College Graduates)
National Unemployment Rate
4,88%
This phenomenon highlights several problems in the education and employment ecosystem
in Indonesia. First, the gap between the educational curriculum and the job market needs can
cause a high unemployment rate among new graduates. Education that is not fully relevant to the
demands of the industry can result in limited skills needed by the job market, making it difficult
for graduates to compete.
In addition, there is also an issue about the quality of information provision and career
briefing for graduates. Many college graduates may be unprepared in terms of soft skills, such as
communication skills, leadership, and adaptation to a dynamic work environment. This can affect
their ability to face the selection and job placement process.
To overcome this challenge, a holistic approach is needed from the government, universities,
and the private sector. Colleges need to improve the quality of education by updating the
curriculum according to industry developments and incorporating more relevant skills training.
Governments can also play an important role in facilitating industry involvement in the education
and training process and providing support programs to facilitate graduates' transition into the
workforce.
With these measures, there is expected to be an increase in the employment of new
graduates and a reduction in the unemployment rate among them, which in turn will support
sustainable and inclusive economic growth in Indonesia.
Qualification Gap and Job Market
The study results show a significant gap between the job qualification requirements and
competencies possessed by new graduates in Indonesia. According to the World Bank (2022), only
53% of university graduates in Indonesia work according to their field of study. This data shows
that almost half of graduates are forced to work in fields that do not match their educational
background. This raises questions about the relevance of the higher education curriculum to the
job market's needs.
Research conducted by the Ministry of Education and Culture (2021) strengthens these
findings. From a survey conducted on entrepreneurs, 40% feel that new graduates do not have
the competencies needed for the positions they offer. Employers highlight that many graduates
lack practical and soft skills such as communication, problem-solving, and teamwork.
Table 2. Percentage of Graduates Working in accordance with the Field of Study
Adelia Azzahra, Septien Dwi Savandha, R. Mahendra Haryo Bharoto, Nzoussi Hilaire Kevin
248 JTUS, Vol. 02, No. 4 April 2024
Information
Percentage
Work according to your field of
study
53%
Not working according to the field
of study
47%
This gap shows that there is a disconnect between the world of education and the world of
work. Higher education systems may need to adapt to focus more on developing skills relevant
to industry needs. Increased cooperation between educational institutions and the private sector
can help bridge this gap through internship programs, industrial training, and job market needs-
based curricula.
Additionally, it is important to regularly review and update the curriculum to keep up with
technological developments and global demands. Improvements in these areas will not only
increase the job suitability of graduates in their field of study but will also reduce the
unemployment rate and increase overall productivity.
High Job Qualification Standards
In Indonesia, high job qualification standards are often a major challenge for new graduates
entering the job market. Many companies require prospective employees to have a combination
of high academic grades, relevant work experience, and specific skills that match the position
offered. For example, for advanced managerial or technical positions, companies often require a
minimum of several years of work experience in a related industry as well as a specific educational
degree from a reputable college. This makes it more difficult for recent graduates who have just
completed their education to compete with more experienced candidates.
Table 3. Entry-Level Job Requirements in Indonesia
Position
Minimum
Qualifications
Specific Skills Required
Administrative
Staff
Bachelor's Degree in
Administration or
equivalent
Advanced Microsoft Office (Excel,
PowerPoint), project management,
advanced communication skills,
strategic planning
Research
Assistant
Bachelor's Degree in
Social Sciences or
Natural Sciences
Analytical skills, quantitative and
qualitative research methodologies,
advanced report writing, statistical
software proficiency (e.g., SPSS, R)
Junior
Programmer
Bachelor's Degree in
Computer Science
or Engineering
Basic programming (Python, Java),
full-stack web development, version
control systems (e.g., Git), software
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249 JTUS, Vol. 02, No. 4 April 2024
development life cycle (SDLC)
knowledge
Junior
Accountant
Bachelor's Degree in
Accounting
Basic accounting knowledge, ERP
systems proficiency (e.g., SAP,
Oracle), financial analysis, auditing
skills
Digital
Marketing
Assistant
Bachelor's Degree in
Marketing or
Communications
Knowledge of SEO/SEM, digital
marketing strategies, data-driven
marketing, content creation and
management, marketing analytics
tools proficiency (e.g., Google
Analytics)
Customer
Service
Representative
Bachelor's Degree in
any field
Communication skills, conflict
resolution, customer relationship
management (CRM) software
proficiency, emotional intelligence
Junior Graphic
Designer
Bachelor's Degree in
Graphic Design or
Fine Arts
Adobe Creative Suite, UX/UI design,
branding and identity design,
animation and multimedia skills
Junior Data
Analyst
Bachelor's Degree in
Statistics or
Mathematics
Excel, knowledge of data analysis,
proficiency in data analysis tools
(e.g., R, Python, SQL), machine
learning basics, business
intelligence software (e.g., Tableau,
Power BI)
The table above illustrates the general requirements for entry-level positions in Indonesia
that are often set by companies. Each position requires a minimum educational qualification of a
bachelor's degree in relevant fields such as Administration, Social Sciences, Computer Science,
Accounting, Marketing, or Graphic Design. Additionally, companies typically require a minimum
of 1 to 2 years of work experience, even for entry-level positions. This indicates that having work
experience is crucial for new graduates to compete in the job market. Each position also demands
specific skills relevant to its field. For example, Administrative Staff must be proficient in Microsoft
Office, project management, advanced communication, and strategic planning.
Discussion
It is important for a job vacancy to be written realistically, reasonably, and not discriminatory.
Realistic job descriptions help prevent gaps between potential applicants' expectations and job
reality, reducing the risk of employees feeling dissatisfied or disappointed after starting a job
(Lössbroek et al., 2021). Non-discriminatory job openings create an inclusive work environment,
respect diversity, and demonstrate the company's commitment to the values of justice and
equality (Faruk, 2024). Additionally, realistic and non-discriminatory job openings help build the
Adelia Azzahra, Septien Dwi Savandha, R. Mahendra Haryo Bharoto, Nzoussi Hilaire Kevin
250 JTUS, Vol. 02, No. 4 April 2024
company's credibility in the eyes of potential applicants, demonstrating the company's
commitment to honest and fair recruitment practices. Clear and accurate job descriptions also
help attract potential applicants who are truly a good fit, reduce the number of applications from
candidates who do not have the appropriate qualifications and improve the efficiency of the
recruitment process (Lyu & Liu, 2021).
However, job vacancies with unreasonable qualifications are still often found. Some of the
reasons why this may happen include the following: First, the HR team may not have enough
experience in the recruitment process, especially in growing small- to medium-sized companies.
Less experienced HR may not realize that the set requirements look unreasonable or don't match
the actual level of work. Second, companies prefer to get the perfect candidate over a candidate
who is ready to work, so they set the qualifications as high as possible to get the best candidate,
even though this takes more time and effort. Third, companies can be affected by the latest
industry trends or practices in the recruitment world that may not always be suitable for every
situation.
Entry-level job positions in Indonesia typically require a combination of academic
qualifications, work experience (1-2 years), and specific skills tailored to each role (Wismansyah et
al., 2024). This poses a challenge for recent graduates, who may struggle to meet these stringent
criteria compared to more experienced candidates. Some companies offer training programs or
internships to bridge the gap between academic learning and practical work experience. While
these programs provide valuable hands-on experience, participants often do not receive any
payment for their work (Hora et al., 2020).
The open unemployment rate (TPT) among university graduates in Indonesia will reach
5.34% in 2023, higher than the national unemployment rate of 4.88%. This data shows that college
graduates have greater difficulty entering the job market compared to the general population. In
addition, as many as 2.6 million university graduates have not managed to get a job in the same
year, indicating a fundamental problem in Indonesia's education and employment ecosystem
(Huub L.M., 2020). The high unemployment rate among recent graduates can be caused by the
gap between the higher education curriculum and the job market's needs, as well as the lack of
practical skills and soft skills such as communication, problem-solving, and teamwork (Johnson,
2022).
According to the World Bank (2022), only 53% of university graduates in Indonesia work in
accordance with their field of study, indicating that almost half of graduates work in fields that do
not match their educational background. This raises questions about the relevance of the higher
education curriculum to the needs of the current job market. Research conducted by the Ministry
of Education and Culture (2021) supports these findings, with 40% of employers feeling that new
graduates do not have the necessary competencies for the positions they offer. This gap highlights
the disconnect between education and the workforce, which requires the adaptation of higher
education systems to focus more on developing skills relevant to industry needs.
The Impact of High Job Qualification Standards on Unemployment Rates Among Fresh
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251 JTUS, Vol. 02, No. 4 April 2024
Previous studies by Asuncion et al. (2023) showed that collaboration between educational
institutions and the private sector through internship programs, industrial training, and job market
needs-based curricula could help bridge this gap. In addition, Mian et al. (2020) noted that
education must be constantly reviewed and updated to match technological developments and
global demands so that graduates can more easily adapt to the dynamics of the job market. By
improving the quality of education and its relevance to the industry, new graduates will be better
prepared to compete in a competitive job market.
The high standard of job qualifications in Indonesia is a major challenge for new graduates
entering the job market. Many companies require prospective employees to have a combination
of high academic grades, relevant work experience, and specific skills that match the position
offered (Herbert et al., 2020). This makes it difficult for new graduates to compete with more
experienced candidates. In response, some companies have started offering internship or training
programs to help recent graduates acquire the skills they need. For example, large banks such as
Bank Indonesia hold training programs for students or recent graduates who want to enter the
banking world, providing a pathway to gain practical experience before qualifying for higher
positions (Ferri Alfadri, 2023).
A holistic approach from the government, universities, and the private sector is needed to
address the unemployment challenge among recent graduates (Demissie et al., 2021). Colleges
should improve the quality of education by updating the curriculum in line with industry
developments and incorporating more relevant skills training (Kang & Xiong, 2021). Governments
can play an important role in facilitating industry involvement in the education and training
process and providing support programs to facilitate graduates' transition into the workforce
(Focacci & Perez, 2022). With these measures, there is expected to be an increase in the
employment of new graduates and a reduction in the unemployment rate among them, which in
turn will support sustainable and inclusive economic growth in Indonesia.
Policy Implications and Recommendations
Higher Education Curriculum Updates
The higher education curriculum should be updated regularly to reflect the current needs
of the industry. For example, the study program may include more modules on the latest
technology, analytical skills, and soft skills such as communication and teamwork. Colleges can
work closely with companies to ensure the material taught is relevant to the job market's needs.
Internship and Job Training Programs
Educational institutions and companies should strengthen collaboration in providing
internship and job training programs. The program should be designed to provide practical
experience that is directly related to the position desired by the student. Companies can offer
clearly structured internships, including performance assessments and feedback that can help
participants develop the skills needed.
On-Campus Career Development Initiatives
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252 JTUS, Vol. 02, No. 4 April 2024
Colleges should provide comprehensive career development services, including career
guidance, CV writing workshops and interview preparation, as well as job fairs that present various
companies. These services help students understand the job market, build professional networks,
and prepare for recruitment.
Incentives for Hiring New Graduates
The government can incentivize companies to actively recruit new graduates, such as
through tax breaks or training subsidies. This can encourage companies to open up more job
opportunities for new graduates, helping them gain much-needed initial experience.
Policy Monitoring and Evaluation
The implementation of the recommended policies needs to be monitored and evaluated
periodically. The government and related institutions must conduct surveys and research to
measure the effectiveness of policies and programs that have been implemented, as well as make
adjustments based on the evaluation results.
CONCLUSION
This research reveals that new graduates in Indonesia face great challenges in entering the
job market due to high job qualification standards and lack of compatibility between the higher
education curriculum and the needs of the job market, so the open unemployment rate for
university graduates reaches 5.34% in 2023, higher than the national average of 4.86%. Only 53%
of graduates work according to their field of study, while 40% of entrepreneurs feel that new
graduates lack the required competencies. To address this issue, it is recommended that the
higher education curriculum be updated to reflect industry needs, strengthen internship and job
training programs, provide on-campus career development services, provide incentives to
companies that recruit new graduates, and regularly monitor and evaluate policies. These
measures are expected to reduce the unemployment rate of new graduates and support
sustainable economic growth in Indonesia.
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Copyright holder:
Adelia Azzahra, Septien Dwi Savandha, R. Mahendra Haryo Bharoto, Nzoussi Hilaire Kevin (2024)
First publication right:
Journal Transnational Universal Studies (JTUS)
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