This book discusses, from a British perspective, the ways in which higher education, and particularly the teaching of undergraduates, responds to the influences of the environment of which the labor market is a major element. It is based on studies made between 1984 and 1987 of 49 departments in nine higher education institutions: four universities, three polytechnics, and two colleges of higher education. The study's main focus is on the teaching of undergraduates in history, English, engineering, physics, economics, and business studies in these institutions. The book describes how the inner life of departments and institutions has been affected by recent changes in the political and economic environment. It also describes how academic staff have adapted to policy changes and resource reductions according to circumstances largely determined by institutional character and subject affiliation. Finally, the book contains a study of the career counseling services in the nine institutions and a survey of student opinion. Contains 110 references, an appendix of methods of data collection, and an index. (GLR)