This report on the first stage of a proposed two-stage project, provides, in nontechnical language a general consideration of the relationship between higher education and employment that is intended to provide a policy background to the specific measures that will be elaborated in the second stage. The report also presents an account of the scale of the problem, including some observations on some of the characteristics of graduate employment. The report gives an account and analysis of what employers expect of graduate employment. Attention is focused on the specific qualities and skills sought by employers. Existing bridges to employment for unemployed graduates are also surveyed. The report concludes that what the bridges have in common is an attempt to restore lost confidence and to equip the unemployed graduate rapidly with basic knowledge about the graduate labor market and with the necessary skills of job search and job acquisition. Finally, the desirability of a program of career education intrinsic with degree studies is considered. Data tables and narrative analyses of the data are appended. A 46-item bibliography and index are also provided. (YLB)