In "Why Good People Can’t Get Jobs", Peter Cappelli dismantles some of the most common explanations for why companies claim they cannot find qualified workers even while countless capable applicants struggle to get hired. The book argues that the real issue is not a mysterious lack of skills but a series of employer decisions - how jobs are defined, how candidates are filtered, and how little organizations invest in training. Cappelli presents research, economic context, and stories from real workplaces that reveal how hiring has drifted into a rigid, automated, and risk-averse system that screens out the very people firms say they need. By looking closely at productivity data, wage behavior, educational trends, hiring software, and the economics of training, he shows that the so-called 'skills gap' is largely a problem created by employers themselves.
Cappelli begins by examining the period after the financial crisis, when companies reported difficulty filling roles even though job seekers far outnumbered openings. On the surface, it looked like a mismatch between what employers required and what applicants could provide. But the economic numbers told another story. Productivity had jumped significantly after 2008, meaning companies could meet demand with fewer workers. At the same time, the labor force had grown, increasing the number of people searching for work. Many discouraged workers eventually stopped looking, which reduced the official unemployment rate, but the underlying imbalance remained. Companies had learned to operate leaner and remained hesitant to add staff unless a candidate appeared to be a near-perfect match. Instead of viewing vacancies as costly, many firms interpreted open seats as a useful way to save money, especially since they didn’t measure the business value tied to each position. This mindset shaped the modern hiring process.
A major source of disconnect lies in how companies imagine filling a role. Many approach hiring as if they were ordering a custom part: define exact specifications and wait until someone appears who fits every detail. But jobs rarely work like that. Responsibilities shift, teams adapt, and employees learn. A successful worker can come from many backgrounds as long as they have a solid baseline and the capacity to grow. Yet advances in recruiting technology, cheap online posting, and huge applicant pools have encouraged companies to be extremely selective. When hundreds or thousands of applications arrive with one click, the temptation to wait for a perfect match becomes overwhelming. As a result, overqualified applicants push aside perfectly competent ones, and degree inflation accelerates. More people are pursuing higher education than ever before, but employers continue raising requirements because the candidate pipeline is so full. Cappelli shows that the apparent shortage of skills is often a shortage manufactured by overly narrow expectations.
Even so, headlines continue warning about talent deficits. Cappelli explains why these claims persist. Surveys regularly report that employers struggle to fill roles, but the reasons have little to do with academia. Many of the 'hardest to fill' jobs require experience more than technical knowledge - roles like machine operators, sales representatives, and administrative staff. When companies insist on candidates who have already done the exact job elsewhere, the available pool shrinks dramatically. Wage levels tell another story: organizations frequently offer salaries below the market rate, then interpret a lack of takers as evidence of missing skills. Mobility further complicates things. Relocation rates have dropped sharply as families weigh the risks of uprooting for uncertain opportunities. Put together, these factors reveal that most shortages stem not from workers lacking ability but from employers insisting on ideal candidates under less-than-ideal terms.
To test whether workers truly lack foundational skills, Cappelli looks at long-term data on education. Contrary to the popular belief that schools are failing, measures of academic achievement have generally risen or held steady over decades. Reading and math performance for young students has improved, science and advanced math enrollment has soared, and dropout rates have declined substantially. International comparisons place the United States in the middle of the pack, but enormous local variation means improvements depend heavily on regional investment. At the college level, many students struggle to finish degrees, which is a real issue, yet the mix of majors has shifted in line with labor market signals. Business, IT, and health programs have expanded dramatically as demand for those fields grew. When shortages do appear - such as in technology - they often flip to oversupply within a few years, showing how responsive student choices actually are. These patterns imply that education systems are not producing widespread skill deficiencies; rather, employer expectations in certain sectors rise faster than schools can forecast.
The biggest driver of hiring bottlenecks is the modern recruiting process itself. Online application systems invite huge numbers of candidates but rely on software filters that eliminate most of them. Job descriptions have ballooned to include every imaginable task, and each item often becomes a mandatory criterion in the database. Even small mismatches - like lacking familiarity with a specific tool brand - can block an otherwise strong applicant. Cappelli illustrates how this algorithmic rigidity creates artificial scarcity: when each requirement acts as a gate with a limited probability of success, a series of gates reduces thousands of applicants to none. Managers then conclude that qualified people simply do not exist. Since legal pressures encourage consistent treatment of all candidates, it becomes risky to manually reconsider those who were automatically rejected, leaving hiring teams trapped by their own systems.
Cappelli argues that the stalemate between employers and workers is made worse by a long-term decline in company-provided training. Most organizations prefer to hire people who already possess every needed skill, yet few are willing to invest in building those skills internally. Many cite cost or fear of turnover, even though research consistently shows that training improves retention. The alternative - keeping jobs vacant while searching endlessly for ready-made employees - often costs more than training would. The book highlights examples of firms that thrive by adopting a different philosophy: hire for attitude, allow room for learning, and provide structured ramp-up time. One publisher hired a promising applicant with limited experience and gave him a probationary period to grow into the job. Companies that choose this approach not only fill roles faster but also build loyalty and cultivate a workforce more aligned with their values and processes.
When organizations do embrace training, the results can be transformative. Cappelli describes a freight company that created its own driving school because the labor market couldn’t supply enough qualified drivers. By combining company-funded instruction with a clear path to employment, they trained hundreds of workers with exceptionally high retention. Models like apprenticeships, employer-college partnerships, and cooperative education programs consistently demonstrate that the most effective skills are those gained close to real work. Yet these systems require cooperation between educators and employers - cooperation that is still relatively rare in the United States.
In "Why Good People Can’t Get Jobs", Cappelli ultimately shows that the hiring crisis is far less mysterious than it appears. The supposed 'skills gap' is largely a product of narrow job descriptions, overreliance on automated screening, reluctance to pay competitive wages, and decades of declining investment in developing talent. When companies simplify requirements, restore human judgment to hiring, and rebuild meaningful training systems - often in partnership with schools - they discover that strong candidates were available all along. The book’s central message is clear: better hiring and more practical training can create opportunities not just for individuals but for organizations and the broader economy.