Part 1 identifies the far-reaching changes to higher education (HE) in Great Britain during the 1990s. It shows that HE has settled into a new status quo, with a market for new graduates in 2001-02. Findings indicate that around 37 percent of 18-year-olds take part in full-time, further, or higher education; the participation rate at age 19 is now roughly on a par with other European countries; participation in HE among nontraditional students has increased during the 1990s; student choice of universities close to home and consequent loss of some "social" benefits of HE in learning to live in a new environment and culture has increased; and the new graduate labor market may be a little less bullish. Part 2 focuses on graduates' early careers, ambitions, their progression relative to non-graduates, and retention patterns with first employers. Findings indicate career prospects are major motivators for those entering HE; job search starts early; first jobs vary greatly, with under 20 percent employed by blue chip employers and many competing for lower-level jobs; 3 years after graduation, over three-quarters are in jobs related to their occupational plan; up to 1 in 5 felt over-qualified for their job; graduates earn more and have more access to flexible work practices; organizations lose about 5 percent of their intake each year; and career progression is the factor that most encourages new graduates to stay in current jobs. (YLB)