A Literature Review of Labor Absorption Level of Vocational High School Graduate In Indonesia

Abstract

Employment is an essential issue in business and economic activities in Indonesia. A labour force, working population, and unemployment rate, which is the capital for the driving wheel of development. With have the knowledge and skills, vocational high school (VHS) graduates to enter the workforce after completing their education immediately. However, in reality, the open unemployment rate of vocational high school graduates still shows the highest number compared to other education levels. This literature review discusses employment in Indonesia, especially for vocational high school graduates, utilizing an employee survey conducted by the Central Bureau of Statistics. This research aims to describe and evaluate Indonesia's employment, especially in the population who have completed vocational high school. The contribution of the study to the parties involved in making recommendations in formulating policies to improve the quality of vocational high school graduates. The result of research, by gender, the number of unemployed male graduates is almost twice as high as that of women. Employment opportunities that are still limited and unable to accommodate all graduates are also thought to be one indicator of the cause of the high rate of graduate unemployment. Based on education level, workers with low education do not choose jobs and tend to accept available jobs. In the informal sector, the percentage of vocational high school graduates who work is much smaller. Male workers tend to receive higher salaries than the wages received by female workers.