This is an important angle. "Good people" is, to a substantial extent, a relationship property, not an individual one. That is I am "good people" for one job, but "bad people" for many others.

That said, this is not a random distribution. Some people have serious character flaws (evil, lazy, angry), or are just not very competent at anything. If all organizations only hire "good people", these will be left unemployed.

And here's the thing:

Those unemployed underskilled "bad people" are then an underused resource, and a reasonably functioning labor market will find way to make use of them.

I think of things like fast-food restaurants as a real triumph in this area! That industry has found a way to run a well functioning business using barely competent people who often quit within months.

And that's pretty much what I had in mind when I wrote my tongue in cheek comment.

BTW, my apologies to current and former fast food workers. I know you're not bad people :) But when you argue about those left out "good people" policy, you kind of have to use that term...