A lot of districts, to my understanding, are re-introducing trade programs for high schools. This is wise. Beyond that, basically every school district offers work-study programs. I'm skeptical that trades will continue to be lucrative only because it seems like a lure for politicians to allow unchecked immigration (see: Canada).
Philosophically, I lean toward the traditional American system that guarantees choice; necessarily, this comes at the cost of efficiency. I also think it's important to remind kids that part of learning is shutting up and coping with idiots because that's the real world, and you have to develop tact somewhere.
In terms of illiteracy and innumeracy... I suspect teachers take the brunt of complaints because (1) they are the most accessible faces of public education and (2) education majors aren't smart. However, I place far more blame on universities' nonsense degrees, subsidized student loans, administrative bloat, social promotion, the retarded research that comes from Schools of Education, and lazy parenting. On the margin, a teacher controls one subject. The drives for learning and accuracy must be kindled at home and enforced by administrations and universities, but that would mean failing students and losing funding.
Anyway, we've created an industry where the output can't cover its input costs. I don't think it'll change until the university Ponzi scheme crumbles.