This study explores how two typical pedagogical modes, namely, problem-based and employment-based pedagogical mode, contribute to the employability of university and college students. Based on analysis of a total sample of 428 undergraduates from Chinese universities and colleges using structural equation modelling, the results show that students' absorptive capacity was positively related to their employability. The employment-based pedagogical mode, considering the absorptive capacity as a partial mediator, was positively related to students' employability. The problem-based pedagogical mode, considering the absorptive capacity as a complete mediator, was positively related to students' employability. Absorptive capacity act as an important mediator variable when the employment-based and problem-based pedagogical mode influence students' employability. Based on the findings, specific suggestions and managerial implications for higher education policy, manpower training, and future research are provided.