Remember, 缺 means to be short of, to have something missing. In this case, the students are short of certain characteristics that would enable them to face society.
In Oz, we don't see this as a character defect. We would say: due to the lack of the right education or training, most students are unable to face the harsh realities of society.
In Mainland China they still think that if you don't follow the norm as given by the ruling party, then you have a character defect. In Oz we don't think like that.