This paper uses data from the 24 governorates in Tunisia over the period 2012–2020 to study the relationship between job insertion of higher education graduates into the formal labor market and a number of independent variables, namely active labor supply, labor demand, an active labor market policy program (named the CIVP program), and the waiting time for job insertion. The balanced panel, which includes 216 observations for each variable, was the basis of different tests and estimations. The results of the tests allowed the assessment of a fixed effects model and a long-term relationship using FMOLS and VECM models. Results show that, in the long term, active labor supply and the CIVP program have positive effects on the job insertion of higher education graduates. In contrast, the results in the short term do not appear significant, with a negative effect of the CIVP program that reflects the fact that companies exploit most of the benefits of this wage subsidy program on job insertion before final recruitment. Using the ARDL model, the individual results by governate show specific differences across areas.