But we are talking about entry level jobs most of which should only really require basic knowledge of the field. The discussion around entry level requirement inflation would be a completely different topic. The abuse is around outsourcing firms that are filling starter positions so I doubt many grads would be unqualified for those.
I thought the concern was around experienced people training their replacements and being let go.
Even for entry-level jobs, what have the graduates done to distinguish themselves and increase their chances of being hired? By the time I graduated college I had three internships, hundreds of open source contributions and was paying the bills through software dev contract work. I had no trouble getting offers.
Of course it meant that I was putting in tons of hours (fine when I was 20) and had time for parties maybe once a month.
There is also a good argument that the American college system is failing its students by misaligning expectations about what you're supposed to do while in it. The Waterloo system (5 years with multiple co-ops) is strictly superior.