He should realize that no job is beneath anyone’s dignity but his whining and living off of others is.
He should pay rent to whoever he is living with, even if it is to his parents and a small amount. If he chooses to move out he doesn’t need his own swanky place but needs to understand it’s OK to share a house/apt with roommates and economize.
He should lose the expectation that his degree will be directly applicable to his next job or any future job. His education may serve him well, but not in the direct and tangible ways that he expects.
He should pay his bills. Whatever he can afford.
He should realize he doesn’t need any ‘toys’ right now. His expenses should be essentials.
He must be willing to accept relocation. He should relish the adventure.
He needs to be proactive.
Your entire post was spot on. I liked this part the best. I always used to say "there's dignity in all work." Least, that's what I told myself when I was a dishwasher. And I was right!