down economy?
I don't think down economy has anything to do with it. Any job worth having will have several to dozens of applications. The hiring manager doesn't want to read them all so the easiest way is to filter things out quickly.
1) no criminal record
2) Once I see a spelling mistake unless I'm impressed already throw the thing in the "maybe later" pile
etc.
I don't think criminal record should be a factor unless the crime is related to the job (fraud in a bank, child abuse in a daycare etc). So rather than use boiler plate application forms the companies should have ones that catch the things they are concerned about. In Canada you don't have to mention a criminal record if you have a pardon (usually 7 years after the crime) not sure if it is the same in the US but something like that would be good too. At some point you have to forgive the criminal or they end up serving life sentences for every crime.
This is were automated application systems both suck and are awesome depending who you are. They suck if you are an applicant you have to create an account, often manually reenter the data for your experience and the jobs you want etc for each job. I can see customizing your cover letter and being selective of what you include when you are applying in several different industries but for each job? What a nuisance. But for the employer it is great they can filter. So start with the most restrictive: no criminal record, every qualification we want, lives near by, available immediately and loosen your criteria up until you get the amount of candidates you are willing to consider.