The article is devoted to the analysis of university and labour market relationship. In addition to economic analysis, studying the involvement process of young people in the labour market is essential to identifying the link between higher education institutions (HEIs) and the labour market in order to assess and implement appropriate policies. This case study was conducted to discover the integration process of the classes of 2014, from three faculties of Armenian State Pedagogical University, in Armenia’s labour market. The research reveals the demand for these professions in the labour market and the pace of finding jobs. The article discusses the factors that hinder or contribute to the process of integration of young specialists in the labour market, as well as, the advantages and disadvantages of HEIs from young professionals’ perspective. Methodological recommendations and guidelines on the organisation of higher education following the labour market requirements are offered in the discussion section. It is significant to develop mechanisms for promoting employers' involvement in management offices and faculties of HEIs, to develop and fix legal norms, to improve the methodological principles and plans regarding the organisation of the practicum practices. It is proposed to expand the functions and role of career centres created in HEIs in order to establish the university's activity by the labour market requirements and to assist graduates in the labour market as well as provide continuous professional development programs and training for the teaching staff.
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