This shifts the burden on to the employer to make a reliable assessment of the applicant. This would have two, imv, favourable effects: 1) a university education would compete on its merits as education with all alternatives; 2) breaking the rent-seeking monopolies universities have on entrance to the jobs market.
The law would have to be carefully crafted -- but we're long past the era when a degree was predictive of anything. It was always a positional good, and if 50% of the next generation have one there's no signal within the noise anymore.
And of course, it was always as much about 'keeping the rifraff out' as it was in selecting good candidates.
For certain professions, eg., teaching/drs/etc., i think it makes more sense for the state to have 'licence to practice' certifications/exams -- rather than assume that a degree is such a licence.