I think there is a certain portion of the population who is just always going to be underperforming, aka unemployable. I think it's probably higher than say the 'good' unemployment rate of 5%ish.
On the other hand, I think employers often over estimate the skill set needed to do many jobs, and it's simple supply and demand in that they don't grasp that if you can't find someone to do a job for 12$ an hour, then clearly you need to increase the pay until you find your supply of good workers instead of complaining that people
I don't think there has been a decrease in 'common' sense or that somehow people are less skilled than a previous generation. It's more that entire new areas of engineering have been created over the last 30 years. The millions of technical engineer people who work on current technology (like software and computer hardware etc) means fewer people for typical manufacturing or engineering.
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