Government plans to boost the numbers of students at university to half of all school leavers by 2010 have come under fire from an employers group.
Some employers are sceptical about graduate numbers
More than half the firms surveyed by the Association of Graduate Recruiters thought there were too many graduates.
In addition, six out of ten firms said expanding higher education was having an adverse impact on graduate quality.
The government's controversial variable tuition fee proposals are meant to pay for the planned university expansion.
The government faces a fight with rebel Labour MPs to get its proposals through the House of Commons.
The expansion of university education is a key plank of the government's education and skills policy.
Alan Johnson, higher education minister, recently told the Association of Graduate Recruiters annual conference that the expansion of higher education was vital to meeting the needs of the UK job market.
The percentage of young people going on to higher education has risen from 33% in 1995 to 43% last year.