These college schooled economist types are so much fun to listen to...they've been 'taught' a model for business activity, but don't...can't...judge if it applies.
For low skill positions, it's simply a matter of pay. For jobs up the food chain, qualifications and personal attributes come into play.
I'm an employer, and the people I interview, and the people my friends interview...well, to be blunt, it would be an odd world if we had full employment. Too many people I talk to aren't employable; you cannot turn their time into value. For many I deal with from other businesses? God bless them, someone found a way to employ them and make it work.
Also, my niece attended a small college in Iowa last year. The freshmen were told what they were learning would be obsolete in 4 years and they would have 11 different jobs in their lifetime. So, as for those graduating college, besides being undereducated, any education is obsolete. Why hire anyone?