||The article examines the reasons for the high demand for higher education in Cyprus. At present, economic, societal, and cultural forces are widely accepted as responsible for the phenomenal increase in demand. A survey of secondary school final form students conducted in Cyprus by the author reconfirms the importance of these forces but also points to another demand influencing factor, namely, the students' psychological motivation in the pursuit of higher studies. The article discusses the policy implications of the findings and suggests the following as measures to help promote a better match between higher education choices and labour market conditions: the provision of greater and more accurate information to secondary school students on the employment opportunities available with a higher education diploma; the promotion of vocational nonuniversity fields of study among secondary school students; and the frequent and closer interaction between higher education institutions and the labour market. .