In the name of hardening of competition, the efficiency of the higher education system as well as graduate employability have become an overarching theme in present discussions of higher education policy and research. Discussions concern, on the one hand, admission to valued institutions and availability of good jobs and, on the other, financial resources, innovations an productivity. In this study, the complex relationships between higher education and the world of work are explored from the vantage point of how individuals make use of higher education system in their transition from education to employment. The variation among individual transition processes in nine European countries is analysed using a comparative graduate survey data. This study discusses the possibilities and limitations the higher education system has in supporting the initial education-to-work transitions of youth. The study also addresses problems with comparing efficiency of national higher education systems in terms of turnover of students and graduate employability.