This paper explores challenges higher education institutions face while ensuring one of the quality assurance criteria--meeting the demands of labour market. The relationship between labour market and higher education institutions becomes even more complicated during the periods of rapid changes in labour market caused by economic collisions. In this article statistical data on employment and higher education is analysed and compared with employers' position expressed in interviews. As a result it is considered that students/potential employees remain the main driving force that brings the demands of labour market into higher education. [For the complete Volume 13, Number 1 proceedings, see ED568595.]