An increase in the number of PhD candidates in the last decades has changed the landscape of employment and the nature of what it means to be a PhD holder. Embarking on a career in academia is a challenging endeavour for early-career researchers while they are confronted with a limited number of job opportunities in academia. Taking into account that knowledge based societies need highly skilled professionals beyond the academic environment, it is important to understand what is the role and value of a PhD for the labour market; and what the current labour market perspectives are for PhD holders. To answer these questions, the authors analysed the available data on PhD holders' employment and conducted semi-structured interviews with European experts on doctoral education and career development. The data and expert interviews point to different contexts across European countries. The numbers of researchers and PhDs employed in sectors outside higher education varies to a great extent in business enterprises, government, and private non-profit sectors. The article maps out different factors which need to be considered when assessing the labour market perspectives of PhD holders, such as the geographic area or country and its economic development, the sector of employment, type of work and the field of research.