I think the problem is also that companies are no longer as willing to train new hires. It can take a lot of work to take an entry level employee and train them

I think the problem is also that companies are no longer as willing to train new hires. It can take a lot of work to take an entry level employee and train them up to the point where they can do the job you really want to hire for. When people worked for the same company for decades it was easily worth it, but now that workers hop around every few years fewer companies are willing to make the investment, hence the fact that everyone is looking for experienced engineers, and recent grads from all but the best schools can have a bit more of a tough time.