I don't think this even requires any bias.
Assume there's some loose ordering of who is or isn't a good hire, and every employer has their own fuzzy view of it. If you get slightly better or worse as a potential hire (pick up an extra degree, let your latest certification lapse, whatever), it gets somewhat easier or harder to get hired.
Now assume that same ordering, but all employers share the same view of it. I'd expect the divide between employable and not employable to be much sharper.
Also, we will of course have all kinds of attempts to "game" the system to get ahead. Optimizing (even more) for the metric. Degree mills, for instance.
You might be able to avoid it with a panel of AI, similar to how we try to avoid it by using panels of humans, but even that turns out to be contentious and not surefire.
I have feeling with AI it'll be even worse, since folks / companies can pass the buck (similar to how health insurance companies are now using it to deny folks).
Unless you're taking the "there are multiple mathematically incompatible ways to define bias" view of the topic, just do what's already known best practice for high-bureaucracy human review. Which is too define an overly-pedantic standard rubric.
However, "this AI model can decide that some subset of people, perhaps random, perhaps not, are simply not hirable for any job" makes sense to most people regardless of political bent.
For example, the article here shows disparate impact: that different percentages of applications are passed through the AI filter. But it doesn’t show differential treatment of otherwise identical applications based on race.
Note that the OP uses "systemic rejection", while the paper does reference bias, it is in the precise meaning of the word.[0] And this is not targeted at the general public.
You may want to look into the 1990 GOPAC handout "Language: A Key Mechanism of Control" to understand why some groups would simply just weaponize any term that was substituted. Academic papers need to error on being precise, to be effective, not focused on handling the general public with kids gloves IMHO.
Edited to add, listen to Lee Atwater's 1981 Interview on the Southern Strategy for even more context.
But LLMs are statistical models. They are aggregating all biases into a general super bias. And they're all converging towards the same solutions.
A lot of the capitalists see that as a positive.
If we move to using just a small number of AI models to help do things like hiring, we will amplify biases and possibly completely lock out portions of the population. We need to be very careful when using AI systems to evaluate people in general -- not because they might be biased (which they might be), but because even a small bias, if used by virtually everyone, can be damning.