The Ministry of Education is proposing a comprehensive overhaul to address the growing crisis of graduate unemployment. A draft directive currently under review would require all public universities and private colleges to establish Employment & Entrepreneurship Development Centres within six months of ratification. The initiative, which mandates annual participation from students and oversight by academic vice presidents, is intended to shift higher education closer to the job market.

For many like Hana Solomon, a 22-year-old Business Administration graduate, the timing could not be more urgent.

“I thought getting a degree meant doors would open,” she said. “But the job market feels like a maze. I didn’t know where to start.”

Hana’s story is a manifestation of the structural disconnect between academic qualifications and labour market realities. With more than 200,000 graduates entering the job market each year, graduates face a demographic dividend at risk of turning into a lost generation. Youth unemployment, driven by a mismatch of skills, limited work experience, and slow private sector job creation, has become a policy flashpoint.

“This directive is a national response,” said Kora Toshine, state minister for Higher Education. “Universities have tried scattered career services before, but this is the first time we are institutionalising it across the board with mandatory participation and measurable outcomes.”

The draft directive places the new centres to operate as autonomous but integrated units within universities, reporting directly to vice presidents for academic affairs. Their mandate is broad, encompassing career counselling, job matching, and entrepreneurship training, as well as internship facilitation, mentorship, and providing practical work experience through co-working spaces and job shadowing. There will also be start-up incubators, career fairs, and networking events with the private sector.

The centres will also be required to conduct regular labour market assessments and tracer studies to ensure their services remain relevant and practical. They are mandated to collect data on placement outcomes, participation rates, and employer satisfaction metrics, which will be used to evaluate university performance.

“We're creating a direct link between institutions and the economy,” Kora told Fortune. “This isn't about ticking boxes. It's about outcomes, including jobs created, businesses launched, and skills applied.”

Some institutions have moved swiftly. Arbaminch University, which has operated a rudimentary version of such a centre since 2010, sees the directive as overdue.

“This gives us the framework and resources we’ve needed,” said Wondwosen Jerene, dean of the College of Business & Economics. “We're reorganising our staff and processes to comply immediately.”

At the University of Gondar, officials have allocated over seven million Birr for implementation, with plans to focus heavily on digital skills and employer engagement. Still, doubts linger among students.

“It sounds promising,” said Moges Mengiste, a fourth-year student at Addis Abeba University. “But too often, these initiatives are more about hosting workshops than helping students.”