Requiring a degree to get a reasonable paying job in a modern economy is a global phenomenon. That shift has nothing to do with whether university if free or paid for, let alone Gough Whitlam.
It does have something to do with Gough. Free education means more people get degrees which lessens the worth of each degree. There are so many people with degrees now that as you point out many jobs require them. That by itself doesn't mean they have intrinsic worth, merely that the bar has been raised.
The below, went in to detail on this matter.
Does Education Matter?: Myths About Education and Economic Growth, Penguin (2002
One of Gough's policies that gets most lauded was one of his worst. IIRC a number in his own party realised this. There is a great quote by a minister (Beazeley? ) re this, cant find it with a quick google though)
By the way is anyone on here going to attempt to defend Gough increasing spending by 40% in one year?
Anyone??