THE GAP BETWEEN EDUCATIONAL OUTPUT AND INDUSTRIAL COMPETENCY NEEDS: AN ANALYSIS OF SKILLS MISMATCH IN A MANAGEMENT PERSPECTIVE
Keywords:
Skill Mismatch, Educational Output, Industry Competency Requirements, Management Perspective, Labor Market,Abstract
This study presents a comprehensive analysis of the phenomenon of skill mismatch in Indonesia during the period 2020-2025. Amid Indonesia's ambition to achieve high-income country status by 2045, empirical data shows a persistent structural dissonance between the supply of human capital from educational institutions and the demand for industry competencies. Using qualitative descriptive methods with a literature review and secondary data analysis approach, this study examines two main dimensions: vertical mismatch (over-education), which has reached critical levels among vocational graduates, and horizontal mismatch, which hinders productivity specialization. The findings show that skill mismatch is not merely a labor market issue, but a managerial challenge that impacts operational cost inefficiencies, productivity stagnation, and a 16.2% “wage penalty” for affected workers. This article also evaluates the effectiveness of management interventions such as Corporate University in state-owned enterprises (Telkom and PLN) and formulates a Strategic Human Resource Management (SHRM) framework that includes skills-first hiring and the implementation of Workplace Learning (WPL)
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