Higher Education in Crisis? Degrees No Longer Guarantee Careers
Ahmad Tholabi Kharlie
(Professor at UIN Jakarta and Member of the Higher Education Council)
There is a growing paradox in today’s labor market: the more university graduates there are, the less certainty there is in employment. Academic degrees, once seen as a guarantee of social mobility, no longer always ensure career stability. Amid the rise of the digital economy and project-based work patterns, the labor market is shifting toward an increasingly flexible system, often referred to as the gig economy.
This phenomenon is becoming more visible in various recent labor market reports. Kompas (March 5, 2026), for example, highlighted the trend of shorter job tenure among graduates. The report describes how formal workers now increasingly hold side jobs, while companies tend to rely on short-term contracts or project-based labor. Employment relationships that were once relatively stable are gradually shifting toward more flexible and dynamic arrangements.
At first glance, this change may appear to be a normal dynamic of modern economies. However, upon closer examination, it reflects a more fundamental transformation in the global economic structure. The labor market is moving away from permanent employment toward a more fluid, network-based system increasingly shaped by digital technology.
The gig economy refers to a work model that no longer relies entirely on permanent employment relationships but rather on short-term projects, temporary contracts, or platform-based services. In this system, individuals may work for multiple parties simultaneously or move from one job to another based on market demand.
In its early stages, the gig economy was often associated with platform-based jobs such as ride-hailing drivers or logistics couriers. However, developments in recent years show that similar work patterns are now entering professional sectors. Consultants, designers, data analysts, writers, and even some academics are increasingly working on project contracts or freelance arrangements. In other words, the gig economy no longer affects only informal workers but is also beginning to shape the lives of educated professionals, including university graduates.
For decades, higher education has been viewed as the primary path for social mobility. A bachelor’s degree was seen as a ticket to stable employment and a secure career. However, global economic transformation appears to be shifting this assumption. Education remains important, but it no longer automatically guarantees job stability.
Economic Transformation
To understand this phenomenon, we need to look at broader changes in the global economic structure. In political economy, David Harvey (1989) explains that since the late 20th century, capitalism has shifted toward what he calls flexible accumulation. Production systems are increasingly characterized by organizational flexibility, labor mobility, and rapid adaptation to market changes.
Sociologist Richard Sennett (1998) describes this shift as the rise of “flexible capitalism.” In this system, long-term employment relationships that once formed the foundation of professional careers are gradually eroding. Companies tend to avoid long-term commitments to workers because flexibility is considered more economically efficient.
This transformation has been accelerated by digital technology. Manuel Castells (1996), in The Rise of the Network Society, explains that the global economy is moving toward a network-based structure connected through information technology. In such a society, production and work increasingly take place within flexible and dynamic networks.
Digital technology has also given rise to new labor platforms that directly connect service providers with users. The International Labour Organization (ILO, 2021) notes that the number of workers involved in digital platforms has grown rapidly over the past decade.
For companies, this model offers cost efficiency and organizational flexibility. But for workers—especially young people and recent graduates—it often means job uncertainty.
Graduates in a Fluid Economy
These structural changes have important implications for university graduates. In many cases, graduates no longer move directly into stable career paths. Some must begin with contract work, short-term projects, or freelance jobs. Many also take on multiple jobs simultaneously to maintain income stability.
This phenomenon is also linked to the increasing number of higher education graduates. In the sociology of education, Randall Collins (1979) refers to this as credential inflation. As more people earn degrees, the social differentiation value of those degrees declines. What was once exclusive becomes increasingly common.
As a result, the labor market becomes more competitive. Jobs that once required only secondary education now demand a university degree, yet not all graduates find work that matches their qualifications. This condition is often referred to as overeducation or underemployment.
Economist and social scientist Guy Standing (2011) describes the emergence of such workers as the rise of a new social class called the precariat. This group lives with unstable employment, limited social protection, and unclear long-term career prospects. Notably, the precariat is not limited to low-skilled workers—an increasing number of university graduates also fall into this category.
Sociologist Ulrich Beck (1992) describes this condition as part of a risk society, where modern life is shaped by various forms of uncertainty. Risks are increasingly tied to structural changes, including economic dynamics and labor market transformations. Individuals are expected to manage these risks independently, including career risks.
In this context, the gig economy presents a new reality for graduates. It offers opportunities, but also significant uncertainty.
The Role of Higher Education
In facing these changes, higher education can no longer be understood merely as an institution that transmits academic knowledge. Universities must transform into innovation hubs that bridge academia and the evolving economy.
Manuel Castells (1996) emphasizes that in a network society, universities play a key role as producers of knowledge and drivers of innovation-based economies. They are not only institutions that produce graduates but also part of an ecosystem that fosters new industries.
Therefore, higher education must reorient its curriculum to be more responsive to labor market changes. Mastery of theory remains important but must be complemented by adaptability, digital literacy, interdisciplinary skills, and problem-solving abilities. In an increasingly fluid economy, lifelong learning is more important than mastery of a single discipline.
In addition, universities must strengthen entrepreneurship and innovation ecosystems. They should not only produce job seekers but also job creators. Many universities worldwide have developed innovation centers, startup incubators, and industry partnerships as part of knowledge-based economic strategies.
This role is particularly important for developing countries like Indonesia. If the number of graduates continues to rise without corresponding growth in high-value economic sectors, the gap between higher education and the labor market will widen.
Ultimately, the gig economy may be unavoidable as part of global economic transformation. What matters more is how society responds to it. If higher education can produce graduates who are adaptive, creative, and innovative, the gig economy can become a space for new opportunities. Otherwise, without proper educational and policy transformation, it risks producing a generation of graduates living in uncertainty.
At this point, the future of higher education is at stake: whether it will become a driver of a knowledge-based economy or merely a degree factory that is increasingly losing its social value.
This article was published in Kompas on Wednesday, March 11, 2026.