This article presents a comparative analysis of the German and UK higher education systems and their relationship to graduate employment. It scrutinizes the complex interconnections between (1) higher education systems and traditions; (2) the role of higher education in the state, society and the economy; and (3) the views of graduates as expressed in interviews. We explore how far and in what ways opinions, expectations and experiences are shaped by (1) national traditions and culture and (2) current economic, social, political and educational developments. We find that today's student expectations and perceptions are shaped and transformed by economic, political and social factors, including potent higher education beliefs dating back to earlier centuries, as illustrated by the reflections of graduates five years after graduation. The analysis explores the commonalities within each country grouping which lead to striking differences between the countries that transcend the mostly country-independent disciplinary differences. The analysis has possible implications for the Bologna protocol and issues of European comparability.