The article analyses the current trends in provision of higher education graduates with employment in the labour market in the European Union by looking into the inter-related issues: the modernization of higher education to the market economy needs, effective measures for providing higher education graduates with employment in the labour market in the European Union, the experience of the European Union. The research is based on theoretical literature review of the existing materials available on this problem. Mainly, they are the EU legal documents and researches of the European scholars. It summarizes the European experience of taking effective measures to provide employment for graduates with higher education. The research is based on a theoretical analysis of authentic sources: the EU strategies, reports to the European Commission and publications of European researchers. The concept of the study is based on the principles of comparative, systemic, holistic, cultural, interdisciplinary approaches, as well as pedagogical forecasting. The article concludes with recommendations for the Ukrainian Government, the institutions of higher education, participants of the educational process. The recommendations are developed to harmonize higher education interaction with the national labour market, taking into account the experience of the European Union on this issue.