Globalisation and the evolution of the knowledge-based economy have caused dramatic worldwide changes in the character and functions of education, particularly higher education. In the search for global competitiveness, many emerging economies have begun to expand their higher education systems, which has significantly affected the relationship between higher education and graduate employment. Recently, international comparative studies have suggested that increasing enrolment in higher education does not always promote upward social mobility, and can intensify inequality in education. This article critically examines the impact of the expansion of higher education in East Asia on graduate employment and social mobility in the context of an increasingly globalising economy and changing labour market needs. The article discusses emerging trends in the Greater China region, with a particular focus on Hong Kong, Guangzhou and Taipei, and argues that the massification of higher education has not necessarily led to more occupational opportunities for youth or opportunities for upward social movement, particularly since the significant changes in the global labour market after the 2008 global financial crisis. On the contrary, the intensification of "positional competition" among college graduates seems to reflect growing social inequality.