The role of university education in Malaysia in meeting the needs of the economy and employers was studied. To explore the relationship between education and employment, attention was focused on population characteristics, the labor market, the education system, and the economic system. Four major research concerns were: reasons for pursuing higher education; the relevance, adequacy, and usefulness of the training provided in the education system to the world of work; ways to correct inadequacies and inconsistencies in the system to address the needs of the world of work; and limitations of the education system in rectifying the education-employment maladjustments. Additional topics of study included: the role of career guidance, the occupational expectations of students, factors that make a job satisfying to the students and graduates, the alternatives for formal education for meeting the needs for skills, and the possibility of cooperation between employers and universities in the production of skilled manpower. Information on the choice of study methodology and the sampling design is included, and questionnaires for sixth-form students, undergraduates, graduates, and employers are appended. A five-page bibliography is included. (SW)