Abstract
Although supply‐demand relationships for psychology graduates in Australia have been poorly documented, several trends can be identified. The output from tertiary institutions has expanded at a time when the traditional employers of psychologists are recruiting on a reduced scale. Pass graduates in psychology seeking immediate employment face strong competition for generalist positions from graduates in other disciplines. Four years of training is no longer a sufficient qualification for employment as a psychologist, possibly due to the impact of coursework Masters programmes. Doctoral graduates have markedly reduced prospects of employment in universities and other tertiary institutions. As well as emphasizing the need for more detailed and informative statistics, the present paper questions whether universities and advanced colleges have responsibilities in relation to the supply, training, and employment of psychologists.