> I don't understand where the premise comes from that higher education is doing this, or even has it as a goal.

They aren't the ones saying it. Parents, government officials and high school guidance counselors are telling everyone they need college to get a good job.

Colleges don't have to say anything thing about it but they raise their tuition abd accept the grant money while expanding their campuses to accommodate the rise in demand. That's exactly how a business would react to a growing market with rising demand and an influx of government money.

People pass through colleges on their way to getting a job and colleges oblige.

What op thinks colleges should be doing is accepting people who they think, with education, could contribute to the college's research fields. Think about the college tracks that lead to PhDs where the student stays with the university for some or all of their career. That's what OP is suggesting colleges become (or revert to, if that's what they ever were).