The article's aim is twofold: to outline the specificity of the embeddedness approach and to explore the embeddedness of graduates' education-job mismatch and the formation of lifelong learning policies. The study is based on both quantitative and qualitative data, obtained from the Bulgarian Universities Ranking System, and from interviews with experts and young adults engaged in a lifelong learning programme. The analysis uses multilevel modelling. It also relies on mapping lifelong learning policies in Bulgaria through a thematic content analysis. The article argues that the misbalances for highly educated people on the labour market mirror structural problems in the economy and the educational system. The argument is reflected in the historical and structural embeddedness of graduates' education-job mismatches and the lifelong learning policies applied to overcome this. The results show that the extent of vertical education-job mismatch depends on the different profiles of higher education institutions and professional fields; they also demonstrate different ways in which the embeddedness approach could help shed new light on, and critically assess, lifelong learning policies. The findings reveal a differentiation between national and local levels of lifelong learning policy towards graduates and that regional policies are actively embedded in local contexts.