Ministry Moves to Bridge Graduate-Employer Gap with Mandatory Employment Centres

Sep 21 , 2025. By NAHOM AYELE ( FORTUNE STAFF WRITER )

More than 200,000 graduates enter the job market every year, facing what many describe as a web of limited opportunities and mismatched skills. The Ministry of Education’s draft directive, now under review, would require every university and college (public and private) to establish Employment & Entrepreneurship Development Centres within six months of ratification.

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.”

Mekdes Nabiro, a recent journalism graduate, echoed that scepticism.

“We’ve seen job fairs come and go with little impact," she told Fortune. "I’m not convinced this will be any different.”

Development economists see potential in the initiative but caution that, without structural changes, the centres alone cannot fix a broken pipeline between education and employment. According to Tewodros Mekonnen, a senior economist at the International Growth Centre (IGC), 80pc of job seekers lack experience, while 40pc are employed yet still seek for better jobs.

“This is not a quick fix," he said. "Universities should align curricula with labour market needs, and the private sector must be incentivised to create opportunities.”

Critics argue that unless internship programs are properly funded and monitored, and employers are brought into the fold as stakeholders rather than passive participants, the directive risks becoming another under-implemented reform. Unusually, the directive also targets alumni, up to three years post-graduation, as well as university staff and potential mentors. Participation is mandatory for all students, at least once per academic year, and universities will be assessed not only on graduate numbers but on employment outcomes.

The Education Ministry has pledged to train centre directors and partner with private employers and donors to fund operations. It also plans to publish rankings based on the universities’ success in job placement and entrepreneurship development.

“Graduation alone isn’t the goal,” said Kora. “We want universities judged by the employability and innovation of their graduates.”

Despite the ambition, challenges are formidable. University budgets are already stretched thin. Employer engagement remains inconsistent. Many graduates continue to report skill gaps in communication, critical thinking, and professionalism, areas not traditionally emphasised in the curriculum.

Nevertheless, students and experts hope that, if implemented with rigour and monitored through transparent metrics, the directive may finally bridge the gap between classroom and career for students like Hana.

“Students would gain the tools, networks, and confidence to succeed, whether employed or starting their own ventures,” Kora told Fortune.

The Ministry is collecting feedback on the draft. Officials state that adoption will be swift and compliance mandatory.

“This is not optional,” Kora said. “Every university should establish these centres. We are committed to ensuring graduates leave equipped for the labour market and empowered to create their own opportunities.”

PUBLISHED ON Sep 21,2025 [ VOL 26 , NO 1325]