The decade of the seventies saw a sharp decline in the relative salaries of the tertiary educated and an increase in their rates of unemployment. It is predicted that in the immediate future one in every three new entrants to the labor markets of the major cities will have some post-secondary education so that the difficulties seem likely to intensify. The policies canvassed in this paper to deal with this situation include: tighter controls to prevent the proliferation of low qualiTY courses, an expansion of State employment especially in the provision of social services, and additional stimuli to the more efficient use of such skilled labor especially in key areas such as technology, finance and international trade.