Can ATS Read Cover Letters?

When applying for jobs online, many candidates focus heavily on optimising their resumes for Applicant Tracking Systems (ATS). But what about cover letters? Do these systems actually read them? The short answer is yes What is a Cover Letter and Why Use it?

A cover letter is a personalised letter that accompanies your CV or resume for job applications. It introduces you to the employer, tells a bit of your career story, and explains why you’re a strong fit for the role.

Even in an ATS-driven hiring process, cover letters remain valuable because they:

• Provide context that a resume cannot fully capture
• Demonstrate communication and writing skills
• Show genuine interest in the role and company
• Allow you to align your experience with job requirements

An ATS-friendly cover letter ensures that both automated systems and human recruiters can easily read and understand your qualifications.

How ATS Processes Cover Letter Content

Applicant Tracking Systems are designed to scan, parse, and store application documents, including cover letters. However, they do not always “rank” cover letters the same way they rank resumes.

Here’s how ATS typically handles an ATS cover letter:

• Keyword Scanning: ATS may scan your cover letter for keywords related to the job description
• Storage for Recruiters: Your cover letter is stored alongside your CV for hiring managers to review later
• Limited Parsing: Unlike resumes, cover letters are less structured, so ATS may not extract detailed data from them
• Search Functionality: Recruiters can search your application (including your cover letter) using keywords

This means your cover letter might not determine your ATS ranking, but it can still influence recruiter decisions once your application is reviewed.

How to Write an ATS-Friendly Cover Letter

Creating an ATS-friendly cover letter requires balancing readability for both software and humans. Here are key best practices:

Use Relevant Keywords Naturally: Incorporate keywords from the job description, such as required skills, tools, and qualifications. Avoid keyword stuffing—focus on natural usage within sentences.

Keep Formatting Simple: Use standard fonts (e.g., Arial, Times New Roman), avoid images, tables, or graphics, stick to clear headings and paragraphs

Tailor Each Cover Letter: Customise your letter for each role by aligning your experience with the job requirements. Generic letters are less effective.

Use Standard File Formats: Submit your cover letter in widely accepted formats like PDF or DOCX, unless the employer specifically asks for a particular file type.

Include Clear Sections: Structure your letter with a strong opening, body paragraphs, and a clear closing.

ATS Cover Letter Mistakes to Avoid

One common mistake is keyword stuffing—overloading your cover letter with repeated keywords in an unnatural way. While keywords are important, excessive repetition can reduce readability and may even be flagged by some systems.

Another issue is using overly complex formatting. Headers, footers, images, and unconventional layouts can interfere with ATS parsing, causing sections of your content to be ignored.

Generic cover letters are also a major drawback. Submitting the same letter for multiple roles reduces keyword relevance and weakens your application. ATS systems favour tailored content that closely matches the job description.

Additionally, relying solely on the cover letter to convey critical information is risky. Since ATS prioritises CV content, key qualifications should always be clearly stated in your CV as well.

Conclusion

Yes, ATS can read cover letters, but the impact on your application depends on how well the cover letter is written and optimised. While they may not carry as much weight as CVs in ATS rankings, cover letters still play an important supporting role.