The University of Sydney has been ranked fourth in the world for graduate employability, coming in ahead of leading institutions such as the Massachusetts Institute of Technology, Cambridge University and the University of Oxford for its effectiveness in "preparing students for the workplace".

The University of Melbourne is closely behind with a rank of seven in the latest QS Graduate Employability Rankings, followed by the University of NSW at 36, the University of Queensland at 49 and the University of Technology Sydney at 69.

A total of eight Australian universities have been listed in the top 100 in the ranking, which was launched in 2015 to look beyond traditional measures such as research strength and academic reputation. Instead, it focuses on students' chances of finding jobs soon after graduation, institutions' reputation among global companies and connections with employers, and the achievements of alumni.

It currently ranks the top 500 universities in the world.