Finding Experience Even When You Are Inexperienced

Many new graduates are scratching their heads when they are told in an interview that they are not qualified due to inexperience. Since they are fresh grads, it should be understandable if they have no experience, right? They need experience to work but cannot work without experience. Now, how can we solve this?

Westhill Consulting and Employment states that it would still be possible to find experience when you are inexperienced.