It's even worse in places where government, either directly or through unions, set the base salaries for people with certain education levels. Then you have higher education, no job, and are unable to be hired doing less education demanding jobs because otherwise they would be forced to pay you an absurd salary for your position.

You're basically fucked. But then government comes to the rescue again giving handouts! Yay... thanks for temporarily solving a problem that you shouldn't have created in the first place.