Are a lot of people unemployed?

You don't have to be unemployed to be looking for a job.  Unemployment is higher than it was a year ago but lower than 6 months ago.  You can look up the unemployment rate for your area to see the trend. That is a good amount of people applying.  

Sounds like the other answers don't know how to use LinkedIn and see the stats there of people that applied for a job.  It clearly gives the information you're describing.  Also know that is just people who applied through the LinkedIn posting.  If it's posted through glassdoor, for example, you won't see those there. 

Know that some people basically spam their resume to any job that is close to their level. That means many may be over qualified (and some under qualified). It's having the right balance which gets you a 2nd look. This is why your resume and LinkedIn profile are so important in getting the recruiter to read beyond the first few lines. (And also making sure you play the game of having key words in there which will be picked up by searches.)

86 people applied for a job (that you know about)

From those 86 people, some are super interested (like you), some applied because it's possibly something they want to do.

From those 86 people, some probably don't have all the credentials for the job, but are trying their luck anyways.  I have no idea how big your city is.  Mine is 450,000 people and I'm sure more than 86 people have my same master's degree, even though it's a degree program most people have never heard of. 

From those 86 people, some live locally, some are willing to relocate if they get the job, and some are willing to have a long commute for the job.

And you have no idea how many people applied for the job. Not everyone applies through the same source.  It could be significantly more than 86 who used the company career website instead or used a different recruitment source than you (indeed vs linkedin vs monster vs a industry specific job board, etc).

Are you kidding me?  You have a masters and you don't know the information above??

Well, if you are in Buford, Wyoming and the job requires a masters in Marine Biology...yeah...it would be rather weird for 86 other people with masters in that subject to live close enough to want the job.

On the other hand...with the same qualifications...and you are in...Chicago...or Oklahoma City...it wouldn't be unusual...and if you were in San Diego, Miami, or ANY city in Rhode Island...it would be common. And I'd say...really... only 86?

ALSO...there is over 9% unemployment in some places.  I'd bet some of those 86 folks are planning to relocate if they get the job.

Its almost as if we are in a pandemic. Oh, wait.

How do you know?   Did they share resumes with you?

Nothing says that everyone that applied has a masters degree or lives in the area. If you are in a competitive field, then people may be very willing to relocate for the right opportunity. And yes, many people are dealing with job uncertainty right now.