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.
Overall, Stanford University was ranked first for graduate employability, followed by the University of California, Los Angeles, Harvard University, the University of Sydney, the Massachusetts Institute of Technology, the University of Cambridge, the University of Melbourne and the University of Oxford.
Martin Juno, lead analyst in the QS intelligence unit, said that Sydney University was the only institution "to achieve at least a top 40 rank in all five metrics considered".
It was ranked eighth in the world for employer-student connections, 14th for its partnerships with employers and in the top 20 for its graduate employment rate.
"All this makes [Sydney University] one of the most reputed institutions among employers in the world ... [it] is clearly [doing] an excellent job in terms of employability, with their employer engagement strategy being top of the class," Mr Juno said.
He said it was the most successful university in Australia "at producing graduates with highly successful career paths".
Mr Juno also highlighted the University of Melbourne and UNSW as the two most reputed Australian institutions among employers.
"Leading institutions present a remarkable aptitude and willingness to successfully engage with a wide range of employers, providing students and [graduates] with an extensive network and, thus, work-placement opportunities," Mr Juno said.
"This enhanced collaboration with companies and organisations, both domestically and internationally, is usually translated into a higher employer reputation, more successful alumni and a higher employment rate after graduation."
A number of Australian universities have performed far better in the graduate employability ranking than the overall QS World University Rankings, which were released in June. The University of Sydney was ranked at 50 in the overall ranking while the University of Melbourne came in at 41.
Mr Juno said that this was mainly due to weaknesses in measures that are excluded from the graduate employability rankings, including research strength and student-to-faculty ratio.