<![CDATA[Unemployment among Vocational High School (SMK) graduates in Medan reflects a structural problem that requires system-based policy intervention. Although vocational education is designed to produce job-ready workers, data show that SMK graduates are among the groups with relatively high unemployment rates. This condition is caused by a mismatch between skills and industry needs (skills mismatch), low involvement of the business and industrial sectors (DUDI), and the lack of optimal regional regulations and incentives to encourage vocational education partnerships. This policy paper aims to formulate policy strategies for the Medan City Government to reduce unemployment among SMK graduates through strengthening vocational education based on labor market needs. The analysis uses a policy logic model approach, an adaptation of the Avoid–Shift–Improve framework, and systematic policy analysis stages to ensure that the proposed policy alternatives are comprehensive, realistic, and implementable within the authority of local government. Policy recommendations focus on strengthening strategic partnerships between local government and industry, providing incentives for companies that employ SMK graduates, facilitating training programs based on labor market needs, and developing regional regulations that support the vocational ecosystem. The implementation of these policies is expected to increase the absorption of SMK graduates into the workforce, enhance the competitiveness of local labor, and contribute to reducing the open unemployment rate in Medan sustainably.]]>
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