I think by now you have picked a few nuggets of advice from the replies given so far. My view is that while papers are important, many graduates fail to enter the job market for several reasons and some have already been mentioned by the various contributors:
i) Papers without evidence of practical skills
ii) Attitude
iii) Holding out for the dream job
iv) Wasting holidays and those breaks which come courtesy of strikes.
My story:
When I was in 2nd year doing a BSc in Comp Science, I volunteered at the campus laboratory and learnt a few lessons on the practical side of computer networking, OS installations, formatting disks, basic maintenance, user support etc. I also gained an appreciation of what a job entails: accountability, results and focus. A family friend ignited this spark for starting out early when he asked me: When everybody in your class gets that undergraduate degree, what will make you stand out.
As soon as I graduated, I got a job as a user support analyst. Not exactly the job I wanted but I did it for 1 year. An opportunity came in the form of a project administrator in an ERP project spanning Africa and Middle East. I took it. I started out doing mostly clerical work and being everybody’s PA - do this, type that, take this to that office, call Steers for dinner, file this and so on. As I demonstrated willingness to learn, I was given more serious tasks: do the weekly status report, take the Steering Committees minutes, coordinate this teleconference, do a post implementation review of this project phase etc. After 2 years, having gained a skills in project management, risk analysis, team coordination etc I was able to get a job with a leading company in Kenya as an analyst.
And now, 2.5 years later, I head a department in the same company. I can't complain about the exciting challenges that this job gives me and the money is not exactly bad :)
I had few papers to talk about in all these starting moves mostly because finances were not really my strong point. It is only now that I have felt the need to go back to school for a masters degree.
People could argue I was lucky but far from it, I believe employers are just looking for a person with focus for results, good interpersonal skills and one who demonstrates that no matter how menial the task, the person does it meticulously. When you have gained enough experience, you can make demands, angle for the best job etc.
If your financial condition can cater for a few more papers, by all means go for them.I am not disputing the value of papers but start off even without them. It is never too early.
Even better, do you have an entrepreneurial side? Start thinking of what you can bring to the economy either in terms of goods or services that nobody else can do.
My two cents.