A more rational approach to higher education would involve raising steeply the academic requirements for students to enter higher education, so that only the most academically able gain entry. This would reduce the numbers of university students and ensure a better match between graduates and the demands of the labour market.
It would also ensure that the average quality of graduates would rise, both because of the higher entry requirements and because smaller classes will allow teaching to be more effective. Higher quality graduates will benefit employers; the graduates themselves will be more productive and so employers will have greater incentives to employ them in graduate level jobs.