There have been several debates regarding the increasing number of unemployed graduates in South Africa. This is alarming. It calls for researchers to probe government's role in graduates' employment creation. This problem is exacerbated by a lack of, among other things, appropriate skills and experience required by the labour market. A case study approach was adopted on graduates' employability in KwaZulu-Natal. This study examined perceptions of postgraduate students on work readiness in the labour market. A purposive sampling design and 74 questionnaires were distributed to graduates from four faculties at the University of Zululand. Participants comprised of both employed and unemployed post-graduate students who were registered as post-graduate students for the year 2016 at this University. The study was supported by Labour Segmentation Theory. The empirical study showed that factors contributing to graduates' un