Fresh graduates are often described as young generations with high productivity potentials but with fewer chances to enter the labor market. After graduation, they frequently find themselves in a complexity of work integration. Employers have expectations from them and they also have their own ambitions that are usually considered as high. Being the promise for a better tomorrow to any labor market, it matters for nations as well as organizations to retain these young generations. Nowadays, retaining fresh graduates has turned to be a great challenge especially that labor market conditions have become very tough and hard hit by economic crises, low wages and unequal labor rights. Although many scholars and practitioners emphasize the importance of retaining fresh graduates in challenging labor markets, research related to the links among fresh graduates, labor market conditions and retention has failed to keep up. Given the importance of this issue, this study seeks to review the existing literature on labor market conditions affecting fresh graduates’ retention and job satisfaction, identify and address the related research gaps and develop an integrated model highlighting how fresh graduates’ retention can be affected by various practices, conditions and psychological states.