Supply and Demand in Vocational Education

Vocational education programs refer to higher education programs that prepare a workforce with specific skills and expertise in their respective fields, ready to work, and capable of competing globally. Generally, vocational education helps participants master certain skills. This allows human resources (HR) to acquire practical knowledge that can be directly applied in the workplace, reducing the time spent learning specific knowledge. The educational programs include diplomas: D1/Associate Expert, D2/Junior Expert, D3/Associate Degree, and D4 (or equivalent to a bachelor’s degree).

In economics, demand can be defined as the desire accompanied by the ability to purchase goods or services at a certain price within a specific period. On the other hand, supply refers to the availability of goods or services in the market provided by producers. However, consumers must have the ability to purchase those goods or services. Vocational education can be considered a product in the form of a service. Vocational education is a unique form of service because it is an experience that subsequently makes others dependent on it, leading to employment. Essentially, the supply of vocational education and training and labor market supply are closely related to contributing to reducing the unemployment rate, reducing academic dropout, and contributing to economic growth.

In the industry, there are often varying needs and demands depending on the sector. However, for vocational graduates to become desired and competent workers in the industry, participants must master a variety of skills. Some of the skills that need to be mastered include hard skills and soft skills, combining knowledge, basic skills, work skills, vocational skills, behavior, and others. According to Pricewaterhouse Coopers (PwC), adaptability is the most demanded skill at 86%. The second most demanded skill is problem-solving at 85%. The third is collaboration skills at 81%. These highly demanded skills can be used as a reference to prepare students and reduce unemployment rates.

In analyzing the alignment of demand and supply, sometimes what is requested is not available, and sometimes the supply exceeds the existing demand. A case in point is the Kawasan Ekonomi Khusus Kendal (KEK Kendal) or also known as Kendal Special Economic Zone, where there is a lot of demand without corresponding supply. For example, there is a demand for chemical analysts, chemical engineers, English, and Mandarin speakers. However, there is a surplus of skills such as Automotive Light Vehicle Engineering (1,492 graduates) and Motorcycle Business Engineering (1,198 graduates). This indicates that the demand and supply are not aligned in the KEK Kendal area. This means there is a supply not in demand and a demand not met. Another example is the Batam Aero Technic Special Economic Zone (KEK Batam Aero Technic). According to the analysis, there is a demand that is not available, such as flight licenses, Aircraft Licensed Engineer & Mechanic (ALEM), and English. There is a high supply but no demand for fields like Accounting and Financial Institutions (570 graduates) and Multimedia (483 graduates).

In conclusion, vocational education is a unique service product. As a service product, vocational education can also be a demand. However, sometimes the demand and supply are not aligned. With two case examples from KEK Kendal and KEK Batam, it has been proven that existing demand may not be met, and there may be an excess supply of graduates that are not in demand.

References:

Mitras Dudi (2022) Kerjasama Direktorat Mitras Dudi Ditjen Diksi KEMEDIKBUDRISTEK Dengan Lembaga Penelitian dan Pengabdian Kepada Masyarakat Universitas Negeri Yogyakarta: Pemetaan Supply and Demand Pendidikan Vokasi. https://penyelarasan.mitrasdudi.id/assets/doc/kajian/LAPORAN%20KAJIAN%20SUPPLY%20AND%20DEMAND%20PENDIDIKAN%20VOKASI.pdf

CNN Indonesia (2023) Permintaan: Pengertian, Faktor, Jenis, dan Bunyi Hukum. Available at: https://www.cnnindonesia.com/edukasi/20230306131716-569-921459/permintaan-pengertian-faktor-jenis-dan-bunyi-hukum#:~:text=Dalam%20ilmu%20ekonomi%20permintaan%20merupakan,tingkat%20harga%20dalam%20waktu%20tertentu (Accessed: 25 June 2024).

Santoso. J. (2022) Pendidikan Vokasi, Apa itu? Available at: https://stekom.ac.id/artikel/pendidikan-vokasi-apa-itu (Accessed: 25 June 2024).

Simak Universitas Indonesia. Deskripsi Vokasi. Available at: https://simak.ui.ac.id/deskripsi-vokasi.html (Accessed: 25 June 2024).

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