Employers are far more happy with graduates from smaller universities than with those from the bigger "group of eight" institutions, with students from James Cook University in Queensland receiving the highest satisfaction ratings in Australia and graduates from the University of Wollongong rated most favourably in NSW, a new national survey has found.

The Department of Education and Training's 2017 Employer Satisfaction Survey, which received responses from more than 4300 workplace supervisors of recent graduates, also found that only 56 per cent of university graduates and 64 per cent of their employers think university degrees are important or very important to their current jobs.

Employers are far more happy with graduates from smaller universities than those from the bigger "group of eight" institutions. Credit:Louise Kennerley

When broken down by institution, 90.6 per cent of the 6800 employers surveyed in 2016 and 2017 said they were satisfied overall with graduates from James Cook University, followed by 89.1 per cent for the University of Notre Dame Australia, which has campuses in Western Australia and NSW, and 88.8 per cent for the University of the Sunshine Coast.

Among NSW-only institutions, the University of Wollongong was highest ranked in fifth place, with 88.1 per cent of employers reporting overall satisfaction with its graduates.