Abstract

One of the enduring issues and problems in Indonesia is the link and match between vocational secondary schools and the world of work in terms of quantity, quality, location, and time. This research focuses on the first issue i.e. quantity of vocational secondary school graduates in terms of supply and demand. The objective of this research was to explore the proportion of general secondary and vocational secondary school students, to find out the unemployment rate of both school types, and to identify policy alternatives to reduce the unemployment rate of vocational secondary school graduates. To achieve the objective, a quantitative descriptive research method was adopted. The research found that the national average proportion of students from general secondary schools and vocational secondary schools was 62.92%:37.08% in 2016 and 63.39%:36.61% in 2019. The national average unemployment rate of both school graduates was 8.72% and 11.11%% respectively in 2016, and 7.92% and 10.42% respectively in 2019. Thus, the unemployment rate of vocational secondary school graduates was higher than those of general secondary school graduates. In Java Island, however, where the population is about 40% of the Indonesian total population, the percentage of vocational secondary students increases significantly from 44.34%:55.66% in 2016 to 39.91%:60.09% in 2019. For this reason, a new policy is needed to reduce the unemployment rate of vocational secondary school graduates in the form of a moratorium for vocational secondary school expansion, particularly in Java Island. If for some reason, there is a need to build new vocational secondary schools in a certain area, it must be based on demand-driven guided by labor market signals. More comprehensively, a policy shift is required to reduce the unemployment of graduates from secondary vocational schools. 

Highlights

  • The enduring issues and problems of vocational education in Indonesia are link and match between vocational education and the world of work in terms of quantity, quality

  • Vocational schools are supposed to be able to contribute to Indonesian growing economy development with the principles of economic, efficiency, and effectiveness. This policy decision poses three questions: (1) what is the proportion of general and vocational secondary school students 2016-2019?; (2) what is the average unemployment rate of general and vocational secondary school graduates or whether graduates from secondary vocational schools are mostly absorbed by the workplaces i.e. employed or unemployed since the policy of expanding secondary vocational schools was only based on assumption?; and (3) what policy shift is required to reduce unemployment rate of graduates from vocational secondary schools? the objectives of this research were three folds, to explore proportion of general and vocational secondary school students, to find out the unemployment rate of both school types, and to explore policy shifts to reduce unemployment rate of graduates from vocational secondary schools

  • The data was validated with nationally aggregated data collected from the Ministry of Education and Culture; and (2) unemployment rate by level of education, graduates from general secondary schools and vocational secondary schools was collected from the Indonesian Bureau of Statistics Center and 34 Bureaus of Statistic Center at the provincial level

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Summary

Introduction

The enduring issues and problems of vocational education in Indonesia are link and match between vocational education and the world of work in terms of quantity (how many graduates are needed by the world of work), quality (what competencies and capabilities required by the world of work, location (where vocational schools should be offered and what types), and time (when graduates are needed by the workplace). This research focuses only on the first issue i.e. the number of vocational school graduates required by the world of work in terms of supply and demand of labor, and the last three issues will be researched later. The supply of labor from vocational schools was supposed to be aligned with the demand for labor from the world of work in terms of quantity. With this policy decision, it was expected that there would be an efficient and smooth transition from school to work. Vocational schools are supposed to be able to contribute to Indonesian growing economy development with the principles of economic (spending less), efficiency (spending well), and effectiveness (spending wisely)

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