"Too many graduates" happens when there are more university graduates than graduate-level jobs available. This creates tough competition, leaving many graduates in lower-paid or non-degree jobs. It can make a degree feel less worthwhile and discourage future students. At the same time, industries that really need workers, like trades and healthcare, may struggle to find skilled employees, creating further problems in the job market.

A low-skilled trap is an economic condition where a region or country is trapped in a cycle of low education, low productivity, and low wages. This trap becomes self-reinforcing, as businesses do not require skilled labour, and workers lack incentives to consume higher education.