The Scottish Government should create a post-graduate apprenticeship scheme to address underemployment among university leavers, according to the National Union of Students (NUS).
While those with degrees are less likely to be unemployed, they often find themselves working in jobs that do not match their qualifications, said the NUS.
It warned that this kind of underemployment leaves young people feeling demoralised and can also lead to difficulty for graduates in finding future employment due to a lack of relevant experience in their field of study.
Robin Parker, president of the NUS in Scotland, is one of a number of witnesses appearing at Holyrood's Economy Committee today to give evidence on its inquiry into underemployment.
The committee is investigating the problem of people working fewer hours than they want to and being unable to fully use their skills in their job.
The NUS said a post-graduate apprenticeship scheme would see greater numbers in graduate-level work through the use of job sharing, while at the same time these opportunities would be combined with part-time postgraduate studies of relevance to the employer and employee.
"The role for the Government in promoting postgraduate apprenticeships would be threefold," the NUS said.
"Firstly, to provide funding for the post-graduate fee support and living cost loans; secondly, to help link graduate employees to post-graduate study of relevance to them and their employer, and thirdly to act as a catalyst to encourage employers to offer job-share opportunities for graduate level jobs."
The NUS also proposed that Government procurement, paid internships and funding for business start-ups could help to ease underemployment among graduates.