Youth unemployment is a major challenge for economic policy makers around the world, especially in developing countries. In developing countries, the role of HEI is to produce employable graduates, which will directly affect the improvement of the level of human capital. Higher Educational Institutions (HEI) have a main role to produce employable graduates who, with their skills and knowledge, will have optimal integration in the labor market. The main goal of this research is to determine the basic determinants that affect the employability of students. This study was conducted among students of Faculty of Economics - Skopje, who are in the final year of their studies. Well-structured questions in the questionnaire distributed provided a solid basis for gathering demographic information and economic characteristics of respondents, as well as their average grade and outlook for the future. Student self-perception of employability is largely relied upon for most of the information. In the study, results indicate that obtaining employment during the study is positively correlated with employability after graduation. Results indicate that students who successfully integrate themselves into the labor market during their studies are significantly more likely to be employed immediately after graduation. Students who come from families with a higher income experience a higher degree of integration into the labor market. Hence, it can be concluded that the level of household income has a statistically significant positive influence on the degree of integration of graduates in the labor market. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
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