Yes cover letters matter. While only about 50% of hiring managers or recruiters actually read them, the decision-makers that do read them, expect to receive them. They may use them to see how your writing style is, because your cover letter is really the only place to show some personality and soft skills (and where you can use personal pronouns). Those that want the cover letters will invalidate you as a viable candidate if you do not provide them with one. You have to play the game so-to-speak, because a lot of competitive job hunters do have them and are using them, and furthermore, even customizing them to the job opening.
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