A McKinsey study finds, "While the young people are qualified—even overqualified, in many cases—to enter the workplace, most of them feel ill-suited to tackle the harsh realities of an evolving job market."
One thing that might help is for schools to offer a lot more career information: "career day" on steroids.
Another thing would be to tell students, as I have for some years, that they need to think of themselves not as potential employees looking for jobs, but as independent small businessmen and women, as, yes, entrepreneurs. (With one major exception--if they plan to work for the government. But that's likely to change in the near future.) Just like small business people do, they need to periodically assess competitive opportunities and threats, and their strengths and weaknesses. Don't take my word for it--a presentation by billionaire Reid Hoffman makes the point very nicely.