I even went to the school in TFA, and I can say for a fact that Grad students in their programs were kind of held hostage (used to be anyway). I have heard this is a common practice all over the US. Prof's would do anything possible to drag out their service and only students on visa's had to put up with it. All of us with citizenship would either rush out the door with our degree...or without, after what we deemed a reasonable course-load.
The problem is this: employers largely need highly educated AND highly skilled labor to fill their needs. Their needs are rarely about developing new technology, they're focused on using new technology to make new products. Schools are providing highly educated workers, more of them in my opinion than demand requires. The problem is schools are not providing highly SKILLED workers. Their education is primarily theoretical. Very little hands on, very little about tools and practices, etc. The only way to acquire skills is to work in a particular function.
So you get your bachelor's and leave school and get a job. You're set, you will get shuffled into a niche that some company has an opening in. You will receive no formal training, but over time develop good OTJ training in that one little niche. And provided that niche doesn't move overseas or become obsolete, you're set for life. If however it does, you end up being one of the many unemployed people with the right degrees that just can't find a job. It happens more often than anyone wants to talk about.
If however you get stuck too long getting a grad degree, particularly a a PhD, you have a bigger problem. You will not have the training, and you will be seen as needing a salary level that puts you at a disadvantage compared to the above. Not a problem if there's a plethora of growth phase companies out there looking to develop a new technology, but that's not really a common situation. So now you have a big degree and a deep theoretical education but your career options are significantly more limited.
Universities would do better by balancing their research aims with a more balanced approach of actually doing real work too, and having students (particularly grad students) fill some of that labor requirement. It will produce better qualified workers and give smart students who may have research ambitions a reason to feel like they're not hanging themselves. It would of course also help if when companies were taken out of growth and stuffed into "value" phase that research was not the first thing that got axed... but that seems like an impossibility.