Bridging the Gap Between Higher Education and Employment: An Empirical Study of Graduate Employability Challenges and Industry Readiness in Pakistan

Abstract

The present research is aimed at researching the main reasons of graduate unemployment and underemployment in Pakistan with the background of the objective of the SDG 8 dedicated to decent work as a goal of the sustainable development. It uses a quantitative method to study the direct effect of three key variables on graduate employability, which are educational quality, development of skills, and collaboration with the industry. The sample size used to collect data was 159 final-year students, fresh graduates, and alumni of higher learning institutions in Karachi using a structured questionnaire. Through the structural equation modeling (PLS-SEM), it was established that all three factors affect employability in a statistically significant positive way. The results indicate that there is the best impact of industry collaboration, skills development and then education quality. These variables alone cover 70.5 percent in the variance in graduate employability. This highlights the supremacy of real-world, industry relevant experience and well-developed skill-building programs. It is concluded that graduate unemployment can be mitigated only through a joint reform in higher education among the institutions, policy makers and employers. Some of the main recommendations are the alignment of the curriculums to the market requirements, incorporation of the soft skills in the curriculum, and promotion of practical learning by way of the internships. These are necessary to ensure sustainable economic growth and employment equity in Pakistan and the paper forms an excellent, data-based model in the future policy and scholarly interventions.