I think part of the problem is that jobs are becoming more and more high skill based, requiring many years of university level education. The low skilled jobs are replaced with high skilled ones. The problem is our education systems are falling behind. Education needs to be readily accessible and inexpensive for both initial schooling and those who need/want to re-skill. The universities should also have employment programs which help workers new to their field find and obtain jobs so they can gain experience.

With the economy the way it is (slower growth, wage stagnation etc), employers are unwilling to take the potential risk with low skilled workers (who have no degree) and there are plenty of new workers who just finished their degree which employers will prefer to employ. I suspect there would be enough jobs, if there were enough high skilled workers and a better economy. I think the problem is there is a shortage of high skilled experienced workers and an oversupply of lower skilled workers.

As some anecdotal evidence, when I search for software engineering / developer jobs in my country, I see a lot of high skilled jobs available, requiring moderate to significant levels of experience and/or education. However, there are much fewer junior/graduate/basic developer jobs available.

To become a high skilled worker, you generally have to start in the low skilled jobs, or get a PhD. If its hard to get a lower skilled/entry level job due to low demand, the rate higher skilled worker are produced is restricted. So its a catch 22.