When Wages Do Not Align with Education, Graduates Abandon Conventional Career Paths

JAKARTA, KOMPAS.com - Amid the tight competition in the job market, not a few university graduates are ultimately choosing to exit the career paths that have long been considered ideal. Instead of pursuing careers aligned with their fields of study, some of them are now more interested in jobs that can provide higher incomes, even if they do not always promise long-term stability. This choice to “switch tracks” often arises from experiences with entry-level wages that feel disproportionate to the effort and costs expended during higher education. “The average worker’s wage is only around Rp 3.0–3.3 million, with annual increases limited to about 1.7–1.9 per cent, even stagnating in real terms. This pressures the return on education, making formal employment no longer sufficiently attractive for new graduates,” he said when contacted on Wednesday (15/4/2026). In such conditions, the educational investment that should yield higher returns instead feels disproportionate. When the returns from formal jobs are deemed low, the shift to the informal sector becomes a rational step for some graduates. Rizal described this phenomenon as a response to labour market conditions. “As a result, the”switching tracks” phenomenon to the non-formal sector becomes rational. Many alternative jobs offer faster income, flexibility, and multi-income opportunities,” he said. He added that the low wage premium in the formal sector leads educated workers to prefer more liquid jobs, even if they are riskier. Amid these conditions, the gig economy plays a role as a temporary buffer for the workforce. However, this role is considered insufficient to address the issues. Although it can absorb a large number of workers, this sector does not fully offer sustainability and long-term protection. A graduate in early childhood education, Nadia Murti (30), once pursued a path aligned with her field of study, from becoming a research assistant to trying her hand as a kindergarten teacher. Her experience as a research assistant gave her many lessons, both academically and in life skills.