This report provides information on trends in higher education and the graduate labor market in the United Kingdom. Data was obtained from the Higher Education Statistical Agency, the Universities and Colleges Admissions Services, the Association of Graduate Recruiters, the Labour Force Survey, and from recent Institute for Employment Studies (IES) reports. After an introductory chapter, the second chapter presents an overview of the implications of increased numbers of students, increased student diversity, the changing higher education experience, trends towards diversification in the graduate labor market, international trends, and future directions in graduate supply and demand. Chapter 3 presents statistical information and commentary on graduate supply and demand, particularly student numbers and entrants, profile of the student population, and graduate employment patterns and graduate demand. Chapter 4 reports on ethnic minority graduates and their progress in the labor market, information technology skill needs among graduate recruiters, the interface between further and higher education, and the nature of the links between further education colleges and universities. (Contains 26 references.) (PRW)