Qualified people and limited positions *Economics?

I'm not an economics aficionado, but I have a question about employment and innovation.

Assuming that there are only 10 positions available for a certain industry and we have 1,000 people qualified and interested to work in those. If only 10 get the jobs, what happens with the expertise and knowledge of the other 990? It is lost? Or it is possible to use it somewhere else?

Maybe a more realistic example could be in finance. There are thousands of people who are interested in PE/HF/IB and would want to break in. They have the skills, expertise,  experience, and whatsoever. Only 5% manage to get employed, so what does the rest 95% do with that knowledge and expertise?

It is simply lost? Do they create paths where they could use them (entrepreneurship)? Do they use the knowledge and skills in other jobs modifying certain aspects so it fits their skillset and knowledge? etc.

What's your thesis?

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