Indonesia's unemployment at 7.24 million, skills gap highlighted

Indonesia's job market continues to grapple with a significant number of unemployed individuals, with figures reaching 7.24 million people as of February 2026. The Central Statistics Agency (BPS) reported the open unemployment rate at 4.68 percent for February 2026, a slight decrease from 4.76 percent in the previous year. The total labor force comprised 154.91 million people, with 147.67 million employed.

Amidst these figures, a critical issue gaining attention is the disconnect between academic institutions and the needs of the professional world. Universitas Pembangunan Jaya (UPJ) is actively addressing this challenge. A tracer study conducted by UPJ revealed that a substantial 93.4 percent of its 2022 graduates secured employment before their graduation ceremony, with an average waiting period of minus three months for their first job.

However, securing employment does not always equate to a role aligned with one's field of study. The same study indicated that only 63.2 percent of graduates found jobs directly related to their major. While career progression aligned with educational levels stood at a higher 85.9 percent, the initial job placement often requires further adaptation.

To strengthen the link between education and industry, UPJ has integrated work experience into its curriculum. Over the past two to three years, 232 students have participated in internship programs within the Pembangunan Jaya ecosystem. Furthermore, UPJ offers an impactful internship program carrying a weight of 20 to 40 credit hours, allowing students to convert a semester of internship into academic credit.

UPJ President Ir. Frans Sunito highlighted the importance of real-world problem-solving and interaction with industry professionals. "This experience is a crucial part of preparing them to enter the professional world," Sunito stated at UPJ Connect 2026. Echoing this sentiment, Sri Agung Agus Putranto, head of BXSea Oceanarium, emphasized that companies seek talent possessing not only academic prowess but also an understanding of organizational dynamics and societal contribution. This underscores the ongoing challenge of ensuring graduates are well-equipped for the modern workforce.