Recent technological advancements have further fuelled the ever-evolving dynamics of future employability. This enhanced the avenue of graduate employability to the forefront of university education across the globe. Universities are striving to provide and equip graduates with capital that complements their sense of employability. This is more particular in a struggling economy like Pakistan, where half a million graduates enter the workforce annually. This study was designed to investigate how psychological capital (PsyCap) and study crafting influence business students’ quality of university life (QoUL) and perceived employability. The study utilised an adapted instrument across a sample of 638 business undergraduates and employed structural equation modelling (SEM) for estimating measurement and path models. The results revealed that higher PsyCap directly improves QoUL. Critically, students who actively crafted their tasks experienced an even stronger positive impact of PsyCap on their university experience. These findings highlight the importance of fostering both psychological capital and study crafting skills within universities to enhance QoUL and perceived employability in the face of increasing academic demands. The findings of the study offer actionable insights for higher education institutions seeking to improve students’ experiences, particularly in a thriving economy and populous hub like Pakistan. The model offers avenues for further research on imperative predictors of students’ perceived employability. © 2025 UCU.
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