It's so funny that many of the nation's bright spark PHDs are some of the most unemployable people on earth. I can't even imagine how difficult it must be to try and get a position in that rat race.
The dilemna is that although it is fairly easy for PhDs in my position to get private sector positions, which are usually much more lucrative, if you want to continue your research, which many, many, recent PhDs do, some because they enjoy their research, some because of pride, some because of inertia, positions are limited, especially if you want to live in specific parts of the country/continent. Compound to that the level of specialization of potential faculty candidates and the specific needs of a university or research institution, and you have a nearly unsustainable system. Ask Chuck for his view from the perspective of someone who was inside now looking from without.