This article has treated in broad terms a major problem and its socio-economic, political, and psychological consequences. A number o f possible solutions have been advanced. It may be objected that with the exception of Maslow’s basic theory and the provision of full employment and basic income, all of the other policy measures are incremental and inadequate. Some of them and their sequence may be also debatable. There is no shortage of possible solutions. What is lacking is a willingness to implement them, which is due to an unwillingness to acknowledge the existence of the problem of unemployment and underemployment of university graduates. More important than any particular policy is the beginning of comprehensive thinking about the relationship between higher education and the labour market for its graduates and a dialogue among concerned parties. A fundamental reorientation in thinking needs to precede any transformation.