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LPEM: Management, Law, and Economics Graduates Face Highest Unemployment

| Source: CNBC Translated from Indonesian | Economy
LPEM: Management, Law, and Economics Graduates Face Highest Unemployment
Image: CNBC

Jakarta - The Institute for Economic and Social Research at the University of Indonesia’s Faculty of Economics and Business (LPEM FEB UI) has revealed that graduates from certain fields of study are the most likely to be unemployed after completing their degrees. In its July 2026 Labour Market Brief, LPEM FEB UI presented unemployment data by degree field, utilising the February 2026 National Labour Force Survey (Sakernas) conducted by the Central Statistics Agency (BPS). At that time, the total number of unemployed individuals was 7.24 million, with 14.27% holding Diploma IV, Bachelor’s, Master’s, or Doctoral degrees. The most recent data from the May 2026 Sakernas showed 7.22 million unemployed, with 14.31% being graduates of these higher education levels.

“When viewed by field of study, the highest number of unemployed individuals with at least a bachelor’s degree comes from Management graduates,” the LPEM FEB UI report stated. According to LPEM FEB UI, Management graduates accounted for the largest proportion of unemployed degree holders at 10.3%. This was followed by Law graduates at 9%, Economics graduates at 8.7%, Education graduates at 7.1%, and Accounting graduates at 5.1%. These five fields of study collectively represented approximately 40% of all unemployed individuals with at least a bachelor’s degree, based on the February 2025 Sakernas data used in the study.

The research team noted that this pattern indicates unemployment among degree holders is largely concentrated in fields with broad scopes and large graduate bases. Management, for instance, encompasses programmes related to organisational management, finance, marketing, human resources, assets, and industry. Accounting and Business Administration are recorded as separate fields, although all three belong to the same business cluster. “The large proportion of Management, Accounting, and Business Administration graduates is not surprising. These programmes are available at many universities and tend to admit large numbers of students,” the team noted. Graduates from these fields can enter various sectors, including administration, marketing, banking, finance, human resources, and business management. However, the wide range of job options does not necessarily make labour market entry easier. Business graduates compete not only with peers from the same field but also with Economics, Law, Communication, and other social science graduates for general entry-level positions.

Law and Economics graduates also represent a significant share. While both fields have relatively clear professional pathways, not all graduates enter jobs directly related to their studies. Many end up competing in the general job market, including positions in corporations, banking, government, administration, consulting, and professional services. The Education field contributed around 7.1% of unemployed degree holders. This group includes various programmes, from teacher education and languages to economics, science, and vocational education. Their labour market entry can be influenced by teacher recruitment patterns, the availability of positions, differing needs across regions, and prevailing professional requirements.

Computer Science or Informatics contributed around 4.6%. This finding is noteworthy because the digital sector is often perceived as having strong job prospects. However, increasing demand for digital skills does not guarantee immediate absorption of all graduates. The field encompasses highly diverse programmes, while industry needs can change rapidly. Differences in educational quality, practical skills, work experience, and the specific technologies used by companies can all affect graduates’ entry into the job market. “This data shows the fields of study most commonly found among unemployed degree holders, not the unemployment rate for each field. Fields that produce many graduates naturally have the potential to contribute more to the number of unemployed,” the research team stated. LPEM FEB UI stressed that this data cannot yet be used to claim that Management, Law, Economics, or Education have the worst job prospects. To measure the risk of unemployment by field of study, the number of unemployed graduates in each field must be compared with the total labour force of graduates from that same field.

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