As a result, you've got a lot of people who would probably do better in one of these roles applying for just about everything that pops up online, since they don't really have that many options. Someone who just finished a coding bootcamp shouldn't be fighting for a senior position, but there are plenty of those who are.
There's also the aforementioned skill mismatch too. The tech jobs being hired for right now have a certain set of requirements, but many of the people being laid off in this industry (or other related ones like gaming) have entirely different skills. So if your company didn't use the latest tech or used tech that's rather niche compared to the mainstream, good luck getting a job. The places that used your skills are either now outsourcing everything or closing down entirely.