Work-based learning (WBL) is an important tool for enhancing students' employability skills in vocational education and training. Many studies have underlined the importance of a variable of WBL, self-efficacy, and vocational identity in developing vocational students' employability skills. Nonetheless, the research is limited and examined separately. Therefore, this study investigates how WBL, self-efficacy, and vocational identity influence employability skills and how self-efficacy moderates between WBL and employability skills. Four hundred and three state university students in Yogyakarta were involved in the data collection. This study used structural equation modeling (SEM) analysis to test its hypothesis. The results of the study revealed that the implementation of WBL did not have a direct effect on employability skills; however, self-efficacy was able to moderate the relationship between WBL and employability skills. However, WBL directly influences vocational identity, which in turn directly influences employability skills, while self-efficacy also directly influences employability skills. This research has important implications for improving learning that can improve students' self-efficacy skills in an effort to build students' employability skills in vocational education and training. © 2025 The Author(s).
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