At the bottom rung of the skills ladder, there are always more applicants than jobs - you have to count the "overqualified", as they will apply for those same jobs.
This is only the case in a poor economy (which, admittedly, we've been in for... some time now). In a booming economy, I heard fellow business owners, when I was one, complain about getting zero filled applications for advertised positions in which they mostly needed a warm body to sweep or greet customers.
I think the truthfulness of your statement varies based on the local laws, welfare state, immigration and job area.
Under the right set of conditions, I can see employers struggling to hire staff. However, potential candidates usually take advantage of this by demanding a better wage, overtime, favourable hours etc. Things that you would have no real qualms about opening negotiation on.
When the shoe is on the other foot; remember that a company's hiring policy is often set by someone who doesn't have to do the dirty work of actually asking the candidate themselves. The interviewer can brush it off as "stupid company policy" and, in the end, nobody takes responsibility for it. It becomes something that is just done.
This is only the case in a poor economy (which, admittedly, we've been in for... some time now). In a booming economy, I heard fellow business owners, when I was one, complain about getting zero filled applications for advertised positions in which they mostly needed a warm body to sweep or greet customers.