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Employability skills consist of both technical and non-technical skills which are demanded in the world of work. Technical and vocational education and training (TVET) prepares prospective workers who will execute important duties and tasks in industry and business. The mismatch in numbers of trainees in vocational training institutions and placement or internship vacancies available in Indonesia's industries and businesses is worrisome. The difficulties encountered by vocational trainees in finding an internship opportunity is unsustainable in that some graduates might leave vocational training institutions without possessing market demanded skills. The Teaching Factory Model is a fitting pedagogical approach for training and education. This study focused on the development of employability skills in vocational high school students through the teaching factory model. Teaching factory is one of the work-based learning models in which students learn marketable skills. The research design used in this study was based on congruent triangulation. Three types of employability skills, namely communication, problem-solving, and teamwork were studied. The study results revealed that trainee students can obtain employability skills through various approaches. It was found that work-based learning is fundamental in skills development when vocational training institutions train more interns than what can be absorbed by both industry and business.

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