The focus of higher education curricula has been changing from factual knowledge acquisition to developing students competences in response to a changing professional environment in the context of a knowledge economy and labour market globalisation.

Despite these social changes, existing teaching and learning strategies in Engineering are still mainly lecture-based.

We investigate competence development using a Project- Based Learning (PrBL) environment on a range of Engineering programmes at Lancaster University, UK and Högskolan Väst, Sweden. We evaluate the PrBL potential to enhance student employability prospects.

PrBL is an example of collaborative student-focussed learning underpinned by constructivist theory which encourages deeper learning via construction of meaning, connection of ideas and creation of meaningful artefacts. PrBL stimulates collaborative knowledge building among participants and develops a range of skills through creating an informal learning environment. First and second-year students on undergraduate programmes in Engineering departments in both universities with projects as part of their course participated in this study. In the UK the students had to design, build and test two types of robots. The Swedish students were given a project to make calculations for a pump with preset parameters. The projects were designed to help the students acquire competences relevant to their future career. All students worked in small groups. After finishing their projects, the students completed an open-ended questionnaire about their experiences.

The students evaluated PrBL positively, stating that they developed problem solving and analytical skills and the ability to apply mathematical tools. They highly rated collaboration with peers and emphasised the necessity of developing time management, communication and organisational skills.

Higher education systems in Europe including Scandinavia are facing new challenges in developing students' employability. We conclude with recommendations for promoting PrBL in university courses as it contributes to competence development and is an efficient tool when administrative resources are limited and when academic staff are faced with large student numbers.