Higher education system has vital importance to train qualified workforce that a country needs. Although holding young population turns out to be an advantage in a well structured education system, overgrowth of young population may cause threat. Higher education system in Turkey has significant problems in terms of efficient use of limited resources. Due to the failure in educational planning, number of graduates exceeds labor market demands in some fields, whereas over capacity problem occurs in some faculties. In this respect engineering and health sciences and also vocational higher education fields are particularly problematic. The other deficiency in Turkish higher education system is that; graduates lack basic acquirements and skill that labor market needs. There is no doubt that higher education is not existent only to train workforce for labor market. However, discrepancy in educational structure and realities of labor market means inefficient use of resources. In this respect, education system in Turkey need to be revised. An education system, more sensitive to labor market demands contributes to increase individual prosperity at micro level and it will also contribute to international competition and development of our country at macro level.