This isn't even a problem that's limited to hiring out of schools. I went to a pretty small school in flyover country, and (much as the article outlines) the hardest part about getting a job was certainly not the interviews, it was getting attention from anyone.
Now I'm working at a local tech company near where I went to school, because I only had local connections from internships etc. Recently I've been looking to move on to a new position and, despite having friends inside of multiple companies (Google, Apple, MSFT) refer me, I've gotten exactly one interview.
If anyone is open to suggestions on how to get more attention, I'm all ears. Until then I suppose I get to shotgun application pages endlessly.