This study aims at exploring the relationship between graduate unemployment and the development of higher education, both quantitatively and qualitatively, in Bangaldesh. It describes the socio-economic framework of the country and traces the development of its education system. In order to complete the background information, an overall picture of the labour force and the employment situation as regards graduate employment, unemployment and under-employment, is provided. An analysis is made of both the supply and demand of the labour market. On the one hand it deals with student attitudes and expectations, and on the other it covers such issues as employment methods and procedures, the relevance of education for jobs and job mobility, particularly as regards Bangladeshi graduates. In the light of the findings presented in the study, an attempt is made to outline the major implications for policy.