First, I would like to ask, could this be a reflection of a failing educational system?
No, on the contrary our educational system is doing just fine, just that in most part of the world poverty has kept so I many children out of school.
My second question is that if you happen to be the employer here, which will you consider more, school or skills?
As an employer, what am mostly looking out for is what value are you offering to me or my brand, so wether you are a graduate or not, as long as you can give me what I want, then you are qualified for the job, having a valuable skills is a major plus but what I draw my conclusion is having the ability to give me what I want.