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In this video tutorial, the importance of a cover letter for candidates in middle management applying for senior leadership roles is emphasized. Using "I" repetitively may indicate a lack of complexity in communication, which is crucial for leadership. A cover letter is essential as it demonstrates care and effort towards the application. It effectively communicates the candidate's fit for the role, detailing what they can contribute to the company and why recruiters should focus on their resume. Given the competition, a cover letter helps candidates stand out in a pile of resumes, providing a compelling narrative that goes beyond the resume alone.