That's just to force candidates to accept terms that are more favorable to employers such as crappier pay (aka lower salaries expense), fewer benefits (aka lower benefits expenses), and temporary work (once again, lower salaries expenses). If you make the job market oversaturated with super-qualified candidates, then no one's super-qualified. It's very predatory behavior.
That gives employers the ability to be incredibly picky. Therefore, they can offer underpaying jobs to highly qualified but desperate candidates whose rent/mortgage deadline is approaching fast. Employers don't want something like the 2021-early 2022 job market, where applicants had so much leverage that they could afford to turn down mediocre job offers to get better offers that would pay them what their qualifications are worth. This is an ideal job market for employers. That's also why you'll often hear about Computer Science or Marketing grads working in retail, food service, hospitality, or customer service for $40,000/year instead of, for example, entry-level IT jobs at Google or marketing jobs at CitiBank for >$85,000/year, for example.
Let's say you've been laid off from your $150,000/year software developer job at Uber, Amazon, Google, Facebook, or another one of these faceless tech firms. You have 3 years of work experience in your field, yet you couldn't land a job in a tech firm even if your life depended on it (which it kinda does, given how terrible homelessness and poverty are). Somehow, there's always, ALWAYS a more qualified candidate. But, you've finally landed a $20/hr job as a front desk associate at Marriott. Going from $150,000/year to ~$40,000/year is a pretty nasty hit to your annual earnings. But, if your rent is due next month, would you turn it down? I wouldn't. I'd take it and then keep looking (or switch to a new field if nothing's working out).
"When everyone's super, no one will be." - Syndrome from The Incredibles
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