They are generally ill equipped, but do not regard position such as analyst and engineers which would give them the foothold they would need to enter that position after a couple of years.
What they have to learn goes far beyond coding and entails getting a sense for data, the business sense that goes with it, an understanding of how to put models, etl code etc.. into production...
Most is fairly hard to teach in a classroom and rather requires practical experience in a business context, so I think the issue is more of an expectation issue than an educational issue. Although it is partially exacerbated by programs such as "Msc of DataScience", that makes student believe they would be ready for these positions straight after graduation.