[papaf]

I don't think this is a troll at all. I'm long term unemployed and I am having a similar experience. Most companies simply won't see the CVs of the unemployed because agencies won't be sending them on.

Anything such as working on a personal startup or returning to education is seen as non-work and counts against you (I've heard this from several agencies in Europe and a careers advisor).

As it is, things are looking up for me but the situation as described in the question strikes me as being very real. I imagine graduates with no work experience are having a terrible time.