Great article and helpful statistics. However, I don't agree about the first suggestion about Military Service for the sole reason that the government will refuse the whole proposal because of it.
I think changing the ratio between physical training and the duration of internship as an engineer in your field while fulfilling your duties in this service would solve most of the issue. Moreover, grant any employee to return to his job after finishing his service with payment running through that year because he is serving his country.
Avoid mixing engineers and college graduates with non educated people, at least in the period of heavy training at the beginning. I didn't serve but the stories I heard from my friends are stupidly shocking to say the least. Why don't you let the ones begging to join the army join and ruin the life of a skinny engineer trying to get the pass so he can continue his work?? Beaurucracy and sick people are responsible on these recruitment and they love ruining people' lives.
Make a good use of engineer in that year and put them in challenging projects with people from the field with experience so everyone can be a winner at the end and maybe broaden their professional network and connections which may help them in their future.