Abstract The relationship between higher education (HE) and the world of work has been discussed for the past few decades, in terms of, among others, contribution of higher education to the labour market, in the form of manpower. The market requires that higher education graduates fulfil certain competencies and in fact they considered more important in the recruitment process than the degree itself. In Industrial Revolution 4.0 which is characterized by trends such as Internet of Things, robotics, virtual reality (VR) and artificial intelligence (AI), the way people live and work has changed and because many jobs are predicted to be lost due to, among others, automation, it is important that HE comprehends the changing nature of the work and map the labour market condition. With the challenge of the 4th Industrial Revolution, it is of utmost necessity to prepare students during their study time, 3-4-year period. This paper will discuss the importance of higher education institutions in mapping the labour market in their efforts to prepare graduates with competencies for the 4.0 industrial revolution. Secondly this paper will discuss the importance of extracurricullar activities in higher education level because when designed carefully, extracurricular activities will become very effective for students to gain certain competencies