People who can actually engineer in python is becoming more and more common place.
If you yourself are a bad engineer or terrible at hiring, you might mistake the chaff for the wheat, but then you're doomed anyway.
I think you're not talking from experience.
The same thing happened with JS when that was peaky, and it'll happen in other languages too.
What is old is new again.
I've been hiring roughly the same amount for 10 years. I'm actually really extremely good at modern python. My skills with python syntax are so good that I can do in 1 line exclusively with generators what a junior programmer probably needs 10 lines and twice as much mutating state to pull off. My code is also likely more modular and neater then a junior but you have to realize none of this matters that much. My skill level with python is beyond the curve of what is necessary and so is any other developer that goes beyond 2 years with python.
In the end every programmer I ever hired exclusively for python will hit this tier within 1 or 2 years, very few exceptions. Roughly half of the junior programmers I hire are actually already within this tier upon getting hired. Literally before hitting there first job. After two years the only thing left to pick up are some more unique patterns and tricks but that's it.
I am 100% talking from experience.
There's still a deficit of talent, even in Python. I don't see anyone denying this reality.
But to your point, there is a flood of bad candidates.
How would you know did you hire these candidates to find out? Or did you dismiss them as bad because they didn't pass some brain teaser algorithm interview?
Those candidates go on to get hired at companies with a lower bar for lower salaries and those lower salaries do influence the market.