That's actually the system working as intended. There's not nearly enough faculty positions or even non-faculty research staff positions to accommodate all the

That's actually the system working as intended. There's not nearly enough faculty positions or even non-faculty research staff positions to accommodate all the PhDs who graduate. The presumption is that most people who graduate will go into something other than academia. If you want to see the system failing, look to humanities, where most people who get a PhD are legitimately interested in academics and yet they will, in the best case, be stuck as terminal adjuncts