Students are being warned to pick the right university courses to ensure they have a job after graduating.
While encouraging new figures show those who found work four months out of university had grown, about one-third of graduates did not immediately find a job, federal Education Minister Simon Birmingham says.
"Australians must think carefully about the courses they enrol in to ensure they are entering a course that they are not only passionate about but that has a job at the end," he said.
The education department data also shows more students are enrolling in university, pushing up the amount of government funding by $3.5 billion in the past four years.
More than 1.2 million people signed up to higher education courses in the first half of 2015, just over three per cent higher than the same period the previous year.
But while praising the record figures, the minister says it's important to ensure students are not just another number on a seat and finish their studies.
Almost 15 per cent of students drop out before their second year.
It was up to universities to take responsibility for those students and make sure they have the support to succeed, Senator Birmingham said.
He also vowed to press on with higher education reforms, with consultations ongoing with students, the sector and parliamentarians.
The government has mothballed plans to deregulate university fees and vowed any reforms won't come into effect until 2017.
