<p dir="ltr">This research investigates the dynamics of graduate employability in the Jordanian labour market, focusing on the alignment between higher education outcomes and labour market needs. Using a triangulated mixed-methods approach, the research integrates survey data from 336 graduates and 292 employers with in-depth interviews involving 21 graduates and 11 employers. The study explores perceptions of employability skills, identifies skills gaps, examines recruitment practices, and highlights structural barriers affecting graduate employment. Findings reveal a significant skills gap, with employers perceiving graduates as lacking essential competencies, particularly in adaptability and practical workplace skills. In contrast, graduates tend to overestimate their skills, indicating misalignment in expectations. External factors such as socio-economic background, cultural norms, including gender disparities and reliance on informal networks (wasta), further exacerbate employability challenges. Additionally, the limited integration of workbased learning within university curricula, contributes to the mismatch between higher education outcomes and industry demands. The research contributes to the literature by proposing a contextualised employability model that incorporates external factors influencing graduates’ employability. It offers recommendations, including enhancing curriculum reforms, expanding work-based learning opportunities, and initiatives to address socio-economic and cultural barriers. Policy interventions are also suggested to support the collaboration between higher education institutions and employers, ensuring that educational programs are responsive to labour market. By addressing the challenges of the Jordanian context, the research lays a foundation for future studies to explore comparative analyses, longitudinal impacts, and the role of emerging technologies in shaping employability. The findings highlight the need for a collaborative, multi-stakeholder approach to bridge the gap between higher education institutions and industry, enhancing economic development and career progression in Jordan and similar contexts.</p>