THE EFFECT OF DIGITAL COMPETENCE AND DIGITAL LITERACY ON EMPLOYABILITY WITH SELF-EFFICACY AS A MEDIATING VARIABLE (Study on Higher Education Fresh Graduates in Madiun City)
Abstract
This study examines the effect of digital competence and digital literacy on employability, with self-efficacy as a mediating variable among fresh graduates in Madiun City, grounded in the high unemployment rate among university graduates despite their adequate education level, which points to a skill mismatch between digital competence and industry needs. This study uses a quantitative method with a causal associative design, a sample of 100 fresh graduates selected through purposive sampling, and data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. Results show that digital competence and digital literacy have a positive and significant effect on self-efficacy and employability, self-efficacy has a positive and significant effect on employability and shows the strongest direct effect in the model, and self-efficacy also partially mediates the effect of digital competence and digital literacy on employability, so that all seven hypotheses are supported. These findings support Human Capital Theory and Social Cognitive Theory, proving that digital competence alone is not enough to raise job competitiveness, while self-confidence stands out as the psychological factor that most shapes job readiness among fresh graduates in the digital era.
Keywords: Digital Competence, Digital Literacy, Self-Efficacy, Employability, Fresh Graduate.
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