The current labor market for higher education graduates in the United Kingdom may be characterized as diverse and fragmented. Many graduates are recruited for the following positions: fast track management training programs; professional and functional careers; "graduate level" administrative and management jobs; and self-employment. In 1999, more than 250,000 individuals graduated with a first degree and 115,000 additional individuals graduated with a subdegree or postgraduate qualifications. The introduction of new two-year "foundation" degree is expected to boost those numbers in the future. As the number of "traditional" graduate jobs (managers, professionals) has failed to grow in line with graduate supply, more graduates have entered intermediate-level jobs (technicians, associate professionals) or lower-level jobs. In late 1999, half of all recruiters had held onto at least 95% of their 1998 intake and 72% of their 1996 intake. Although they have been largely beneficial to jobseekers, degrees and equivalent qualifications have not been passports to good jobs. Employability skills (including career management and self-presentation skills) are also needed to ensure effective transition into the United Kingdom's labor market, which will likely see further fragmentation in the future. (Thirty-three figures are included. Contains 54 references.) (MN)