There are two reasons: 1. They want to pay them a lower wage. Sometimes they get funding from various agencies to hire them as well. The current trend is pakis, you see them everywhere. Some idiot wants to be a boss and hires a few pakis and becomes a contractor, or even larger firms hire dozens or even hundreds of them. 2, Parents want their kids to become "graduates" so they can have a higher status job because working the trade is seen as lower status. The result is more and more unemployed, of course the education system is corrupted and everyone ends up with a degree as long as he gets into cheating and enrolling at political party youth and so on.