The aim of this paper is to provide a comparative analysis of higher education and the graduate labour markets in selected European countries (France, Germany, Spain and United Kingdom) in the context of the expectations of graduates and prospective employers, and respective recruitment and selection practices. Expectations of graduating students from a number of European collaborating universities are sought and analysed in order to find out about a match between the knowledge and skills of graduates and the needs of European employers. The study examines the process of graduate recruitment, employee and employer expectations, and the role of higher education institutions in meeting such expectations. Primary data was gathered from 252 employers and 485 final year (graduating) students through the use of questionnaires. The analysis of the data collected has revealed different approaches to but similar methods of graduate recruitment between the four countries. Despite the current differences in higher education systems and labour market trends, the expectations of employers and graduating students are more similar than different. It is concluded that EU graduates will have good employment prospects in an integrated labour market.