Ministry: Skill Mismatch is Main Factor in Educated Unemployment

Indonesia's Ministry of Manpower points to a significant "skill mismatch" between the qualifications of the workforce and the demands of businesses and industries as the main reason for the country's high rate of educated unemployment. This gap is a key factor behind the substantial number of university graduates struggling to find employment.

According to the Central Statistics Agency (BPS), as of May 2026, there were 1,033,182 unemployed individuals with university degrees, including those with Diploma IV, Bachelor's, Master's, and Doctoral qualifications. This figure constitutes approximately 14.31% of the total 7.22 million national unemployed population.

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The phenomenon of graduate unemployment is caused by a mismatch between job competencies and the skills possessed, as well as low digital literacy and soft skills.

Anwar Sanusi, head of the Ministry of Manpower's Planning and Development Agency, elaborated that the issue stems from a disconnect between job requirements and employee skills, compounded by low digital literacy and soft skills among graduates. He also noted that the growth of formal job opportunities has not kept pace with the increasing number of new university graduates, many of whom are selective about the types of formal positions they will accept.

Furthermore, the rapid evolution of technology and industrial transformation has outpaced the adaptability of educational and training systems. This disparity leaves many graduates without the competencies currently sought by the job market. Faried Abdurrahman Nur Yuliono, head of the Ministry's Public Relations Bureau, added that limited work experience, insufficient soft skills, and a lack of professional certifications also hinder the absorption of these graduates into the workforce.

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Formal job growth has not kept pace with the number of new graduates, coupled with graduates' preference for waiting for specific formal jobs.