It is a catch 22 situation. The low time pilots can't get jobs, therefore they instruct to build up hours. To do that, heli-schools need students. They advertise how glamorous a job it is,how well paid it can be, encouraging people to spend money in their schools, creating yet more low time pilots who in turn will have to instruct to gain instruction. It happens everywhere in the world. I suppose it is a business. Fixed-wings schools do it as well.
Difficult to change.