Article Gold Open Access 2025

Unlocking workforce readiness through digital employability skills in vocational education Graduates: A PLS-SEM analysis based on human capital Theory

Social Sciences and Humanities Open
Journal · Vol. 11 · Art. 101625
Abstract

In the context of Industry 4.0, employability skills have become a vital indicator of an individual's readiness for work, particularly in industrial sectors. They are essential for increasing competitiveness, productivity, and long-term career development. However, a significant gap persists among vocational education graduates in Indonesia, where high unemployment rates and skill mismatches pose challenges. This study aims to analyze employability skills among vocational graduates using a human capital investment framework adapted to a digitalization approach. A total of 2587 vocational high school graduates in Yogyakarta, Indonesia, were surveyed using an online questionnaire and selected through exponential snowball sampling. Employability skills were measured through 37 indicators and analyzed using Partial Least Squares Structural Equation Modeling to test both measurement and structural models across 24 hypotheses. The results demonstrate that the proposed empirical model is valid, reliable, and possesses strong predictive power with an R-squared of 0.855 and a Q-squared of 0.605. Digital Communication and Collaboration emerged as the most influential full mediator, effectively linking all exogenous variables to Digital Creativity and Production, highlighting its importance in developing digital productivity and innovation. Several direct relationships were statistically unsupported, including the paths from Technology Adaptation and Specific Software Skills to ICT Resources Integration and Analytical and Problem-Solving Skills to Digital Communication and Collaboration and Digital Creativity and Production. These findings emphasize the importance of structured learning interventions integrating technical training with ICT-based group projects to promote collaboration, digital interaction, and problem-solving. The study contributes practical insights for vocational curriculum development to enhance graduate readiness in the digital labor market. © 2025 The Authors

Keywords

Author Keywords

Employability skills Graduate employability Digital collaboration Digital creativity vocational technology competencies

Index Keywords

Author Affiliations
Department of Vocational and Technology Education, Universitas Negeri Jakarta, Jakarta, Jakarta, Indonesia
Department of Desain Fashion Studies, Universitas Negeri Yogyakarta, Yogyakarta, Yogyakarta, Indonesia
Department of Technology and Vocational Education, Universitas Negeri Yogyakarta, Yogyakarta, Yogyakarta, Indonesia
Universitas Pendidikan Indonesia, Bandung, West Java, Indonesia
Department of Mechanical Engineering, Universitas Sebelas Maret, Surakarta, Central Java, Indonesia
Department of Primary Teacher Education, University of Widya Gama Mahakam Samarinda, Samarinda, East Kalimantan, Indonesia
Department of Economics, Universitas Tanjungpura, Pontianak, West Kalimantan, Indonesia
Funding & Acknowledgements
Arizona Public Service, APS
Grant: H-Dir4a, 2022
Digital Communication and Collaboration (DCC) refers to conveying ideas clearly and collaborating effectively using digital platforms in professional settings. This competence fosters interaction across diverse roles and organizational structures (Jatmoko et al., 2023; Kholifah et al., 2024). DCC enhances productivity, supports remote teamwork, and encourages innovative outcomes through cross-functional collaboration (Feng & Liang, 2024; Sumarni & Sudira, 2022). Its assessment includes indicators such as active participation in virtual teams, effective use of communication tools, and the clarity and professionalism of digital interactions (Li et al., 2024; van Laar et al., 2017; Zhao & Ko, 2024). In essence, DCC reflects proficiency in using digital communication platforms, managing virtual projects, and collaborating to share and organize information efficiently.Discriminant validity was assessed to determine how each construct is distinct. The results confirmed that the square root of the AVE (\u221AAVE) for each construct exceeded the correlations between constructs, indicating satisfactory discriminant validity. As shown in the correlation matrix (Table 3), the correlation of APS with itself (0.861) is greater than its correlations with other constructs (APS \u2192 IRI = 0.775; APS \u2192 DCC = 0.610; APS \u2192 DCP = 0.578), supporting the distinctiveness of the APS construct (see Table 4).The empirical findings of this study highlight the significant influence of employability skills on career readiness for vocational education graduates, aligning with recommendations in the literature. Key skills, such as people management, complex problem-solving, critical thinking, creativity, coordination, emotional intelligence, and decision-making in the context of digitalization, have a dominant impact on readiness. Graduates' digital skills (DSS), anxiety towards ICT (ATI), and technology adaptation (TAD) significantly enhance their digital preparedness, as evidenced by the support for multiple hypotheses (H-Dir1a, H-Dir1b, H-Dir1c, H-Dir2a, H-Dir2b, H-Dir2c, H-Dir3a, H-Dir3b, and H-Dir4a). However, the hypothesis H-Dir3c, which suggests that TAD facilitates ICT Resource Integration (IRI), is not supported, possibly due to the limited integration of advanced technologies in vocational programs. This study confirms prior research (Ozer & Perc, 2020; Vieira et al., 2022), underscoring the gap between vocational education and industry technology, while supporting Nguyen et al. (2022) that mastering specific software enhances graduates' technical competencies, fostering innovation and creativity needed for solving complex challenges (Reddy et al., 2020; Susanto et al., 2020).
Arizona Public Service, APS
Digital Communication and Collaboration (DCC) refers to conveying ideas clearly and collaborating effectively using digital platforms in professional settings. This competence fosters interaction across diverse roles and organizational structures (Jatmoko et al., 2023; Kholifah et al., 2024). DCC enhances productivity, supports remote teamwork, and encourages innovative outcomes through cross-functional collaboration (Feng & Liang, 2024; Sumarni & Sudira, 2022). Its assessment includes indicators such as active participation in virtual teams, effective use of communication tools, and the clarity and professionalism of digital interactions (Li et al., 2024; van Laar et al., 2017; Zhao & Ko, 2024). In essence, DCC reflects proficiency in using digital communication platforms, managing virtual projects, and collaborating to share and organize information efficiently.Discriminant validity was assessed to determine how each construct is distinct. The results confirmed that the square root of the AVE (\u221AAVE) for each construct exceeded the correlations between constructs, indicating satisfactory discriminant validity. As shown in the correlation matrix (Table 3), the correlation of APS with itself (0.861) is greater than its correlations with other constructs (APS \u2192 IRI = 0.775; APS \u2192 DCC = 0.610; APS \u2192 DCP = 0.578), supporting the distinctiveness of the APS construct (see Table 4).The empirical findings of this study highlight the significant influence of employability skills on career readiness for vocational education graduates, aligning with recommendations in the literature. Key skills, such as people management, complex problem-solving, critical thinking, creativity, coordination, emotional intelligence, and decision-making in the context of digitalization, have a dominant impact on readiness. Graduates' digital skills (DSS), anxiety towards ICT (ATI), and technology adaptation (TAD) significantly enhance their digital preparedness, as evidenced by the support for multiple hypotheses (H-Dir1a, H-Dir1b, H-Dir1c, H-Dir2a, H-Dir2b, H-Dir2c, H-Dir3a, H-Dir3b, and H-Dir4a). However, the hypothesis H-Dir3c, which suggests that TAD facilitates ICT Resource Integration (IRI), is not supported, possibly due to the limited integration of advanced technologies in vocational programs. This study confirms prior research (Ozer & Perc, 2020; Vieira et al., 2022), underscoring the gap between vocational education and industry technology, while supporting Nguyen et al. (2022) that mastering specific software enhances graduates' technical competencies, fostering innovation and creativity needed for solving complex challenges (Reddy et al., 2020; Susanto et al., 2020).
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