Number of Graduates Increasing, Yet 1 Million Indonesian Graduates Remain Unemployed
The number of university graduates in Indonesia continues to increase annually, yet a bachelor’s degree does not always guarantee easier access to employment. Data from the Indonesian Central Statistics Agency (BPS) shows that around one million university graduates in Indonesia are still seeking work. This situation highlights the issue of misalignment between graduate competencies and the needs of the workforce.
Professor Dr Bagong Suyanto, a Professor at the Faculty of Social and Political Sciences (FISyl) at Airlangga University (UNAIR) and an educational sociologist, suggests that ideally, an increase in education levels should be accompanied by improvements in competence, job quality, and welfare. However, this condition has not yet fully materialised in Indonesia.
“University graduates still find themselves in jobs that do not align with their education or the competencies they possess,” said Bagong, as quoted from the official UNAIR website on Tuesday (1/9/2026).
Bagong assesses that one of the primary problems faced by university graduates is the mismatch between their skills and labour market requirements. While the industrial world is developing rapidly, many graduates are deemed to lack relevant skills. “As a result, not all graduates are able to meet the demands of available jobs,” he noted.
This issue is also linked to the direction of industrial development in Indonesia, which tends to prioritise capital-intensive industries. Capital-intensive industries, he explained, rely on the use of technology, machinery, and capital in their production processes, resulting in a relatively lower demand for labour.
“A bachelor’s degree can no longer serve as a guarantee for someone to obtain employment and improve their standard of living,” said Bagong.
Bagong stated that the problem of graduate unemployment cannot be viewed solely through the lens of graduate capability. The direction of economic development also determines the breadth of available job opportunities. Consequently, he is encouraging the development of labour-intensive industries that can absorb a larger number of workers.
Amidst the rising number of graduates, he also emphasised the importance of maintaining educational quality. An increase in the number of graduates will not yield maximum impact if it is not accompanied by competencies that meet the needs of the working world. Universities, according to him, must ensure that the educational process equips students with relevant skills and the ability to adapt to changes in the labour market.
“It is futile to have many graduates if the quality of the universities cannot be held accountable,” he asserted.
Bagong believes that the government and universities must work together to address this issue. The government can expand job opportunities through development policies that encourage labour-intensive industries, while universities are responsible for ensuring that graduate competencies align with market needs. “Do not just pursue the number of graduates, but ensure they possess the quality and competence that the working world truly requires,” concluded Bagong.