This paper from the Graduates for the 21st Century Enhancement Theme builds on the previous work in the Employability Enhancement Theme in response the immediate austerity faced by both staff and students. The paper briefly looks at key points re-articulated in the research on employability (work-based learning, volunteering and student motivation and embedding employability). It then looks at employability and enhanced research-teaching cultures and at additional trends observable in the Scottish higher education context. These divide into four themes: diversification of the institution’s role; higher education and rural regeneration; employability initiatives at a distance; work-related learning and the potential transformation of 'non-vocational' disciplinary learning.