What The Rise Of Fake Job Listings Says About The Job Market

Summary

The script discusses the frustrating phenomenon of 'ghost jobs', where job listings appear but companies have no real intention of hiring. It reveals that 40% of companies posted fake jobs in 2024, affecting the job market's credibility and complicating the hiring process for job seekers. The rise of ghost jobs is linked to economic cooling and companies keeping options open for future talent without current hiring plans. The script also addresses the challenges in identifying ghost jobs and the role of job platforms in combating this issue.

Takeaways

• 😕 Ghost jobs are a significant issue in the job market, with 40% of companies admitting to posting fake job listings in 2024.
• 🔍 The rise of ghost jobs may indicate a cooling economy, where employers are hesitant to hire, leading to a slowdown in demand for talent.
• 👻 Ghost jobs are real company listings for non-existent positions, often kept open for future hiring or due to budget cuts and holds.
• 📉 Over the past five years, the rate of hires per job posting has halved, indicating an increase in ghost job prevalence.
• 🤔 The phenomenon of ghost jobs confuses job seekers, as it softens the signal of genuine hiring intentions from employers.
• 💡 Companies may post ghost jobs to keep their options open for talent, similar to keeping active profiles on platforms like Tinder.
• 📊 Some companies use ghost jobs for market research, gathering data on salary expectations and skill sets without immediate hiring plans.
• 📈 Despite a slowdown in hiring, the overall labor market remains healthy, with JOLTS data showing a tight labor market.
• 😟 The disconnect between job market data and job seeker experiences is highlighted by the rise of ghost jobs, making it harder for people to find employment.
• 🕵️‍♂️ Identifying ghost jobs can be difficult, but signs include listings open for over a month or job postings with an unusually high number of applicants.
• 🛠 Job posting platforms have a responsibility to address ghost jobs by verifying job listings and ensuring transparency about hiring status.

Q & A

What is the frustration that John Doe experiences when applying for a job?

John Doe experiences frustration when he sees the same job posting relisted after waiting for a response for over a month, which makes him question whether the job was ever genuinely available.

What are 'ghost jobs' in the context of the job market?

Ghost jobs are job listings that are posted by real companies but do not represent actual, current hiring needs. They may be for roles that the company is not actively filling or may have put on hold due to budget cuts or other reasons.

According to the May survey from Resume Builder, what percentage of companies posted fake job listings in 2024?

According to the May survey from Resume Builder, 40% of companies posted fake job listings in 2024.

What does the rise of ghost job postings indicate about the economy?

The rise of ghost job postings indicates a cooling in the economy, as employers are more hesitant to make hiring decisions, suggesting a slowdown in demand for new hires.

How has the occurrence of ghost jobs changed over the past five years?

The occurrence of ghost jobs has increased dramatically over the past five years, with the rate of hires to job postings halving, going from eight hires per ten job postings in 2019 to four hires per ten job postings.

Why do companies post ghost jobs, even if they are not actively hiring?

Companies post ghost jobs to keep their options open for future hiring, to enhance their market visibility by appearing as a growing and thriving organization, and to gather market research data on salary expectations and skill sets.

What is the impact of ghost jobs on job seekers?

Ghost jobs can mislead job seekers, causing them to waste time and effort applying for positions that are not genuinely available, and creating a disconnect between the perceived job market and the actual experiences of job seekers.

How does the rise of ghost jobs affect the labor market and economic decisions?

The rise of ghost jobs muddies the job market, making it harder for entities like the Federal Reserve to make informed decisions and understand the true state of the labor market.

What are some signs that a job posting might be a ghost job?

Signs of a ghost job include a job being open for an unusually long period, a high number of applicants with no apparent hiring, and vague job titles that do not specify clear job responsibilities.

What measures can job posting platforms take to address the issue of ghost jobs?

Job posting platforms can take responsibility for verifying the authenticity of job postings, implementing enhanced verification methods, and holding companies accountable for transparency regarding the duration of listings and recent hiring activity.

What does the prevalence of ghost jobs suggest about the current state of the labor market?

The prevalence of ghost jobs suggests that the labor market is not currently friendly to job seekers, with companies taking advantage of a legal gray area to attract potential talent without the intention of immediate hiring.

Outlines

00:00

😤 Frustration with Ghost Jobs in the Workforce

The first paragraph introduces the concept of 'ghost jobs,' which are job listings that appear to be genuine but are not actually hiring at the moment. It discusses the frustration of job seekers like John Doe who apply to these positions, only to find the same listings reposted without any hiring taking place. The script reveals that a significant number of companies have been found to post such fake job listings, contributing to a misleading job market. The rise of ghost jobs is tied to economic cooling and a hesitancy among employers to make hiring commitments. The paragraph also explains that these jobs are not scams but listings from real companies that are not currently hiring for the advertised positions, possibly due to budget cuts or other reasons.

05:02

🔍 The Illusion of a Robust Hiring Market

The second paragraph delves into the impact of ghost jobs on the perception of the job market. It points out that while job boards may show a high number of openings, creating a false impression of a robust hiring market, these ghost jobs distort the reality. The paragraph discusses the difficulty in identifying ghost jobs and suggests that job listings open for an unusually long time or with an unusually high number of applicants could be red flags. It also touches on the role of job posting platforms and their responsibility in addressing the issue, suggesting that they could implement more stringent verification methods and require transparency from companies about the status of their listings.

10:04

🤔 The Implications of Ghost Jobs on the Labor Market

The third paragraph explores the broader implications of ghost jobs on the labor market and the challenges in understanding these trends. It suggests that ghost jobs may be a contributing factor to confusing patterns observed in the labor market, such as a discrepancy between reported job openings and the actual hiring activity. The paragraph also discusses the potential long-term effects of ghost jobs on job seekers' behavior, such as always keeping options open and maintaining multiple recruitment contacts. It concludes with the acknowledgment that the true nature of ghost jobs and their impact on the labor market may only be understood after the current economic cycle is over and more in-depth analysis is conducted by economists.

Keywords

💡Ghost Jobs

Ghost jobs refer to job listings that are posted by companies but do not actually exist or are not actively being recruited for at the time. They are a significant issue in the job market, as they can mislead job seekers and create a false sense of job availability. In the script, the rise of ghost jobs is tied to economic cooling and employer hesitancy to hire, with statistics indicating that a considerable number of companies post such listings.

💡Resume

A resume is a document used by individuals to summarize their skills, work experience, and education for potential employers. In the context of the video, John Doe prepares his resume to apply for a job listing, highlighting the importance of this document in the job application process.

💡Cover Letter

A cover letter is a written document that accompanies a resume and explains why the applicant is a good fit for the job. It is part of the job application process and is used to showcase the applicant's interest and qualifications for the position. In the script, John Doe writes an awesome cover letter to accompany his resume, demonstrating a proactive approach to job seeking.

💡Job Posting

A job posting is a public advertisement for a job vacancy, typically detailing the job responsibilities, qualifications required, and how to apply. The script discusses how job postings, specifically ghost jobs, can be misleading and contribute to the frustration of job seekers like John Doe.

💡Economic Cooling

Economic cooling refers to a slowdown in economic activity, often characterized by reduced hiring and investment. The script suggests that the rise of ghost jobs is indicative of a cooling economy, where employers are more hesitant to make hiring commitments.

💡Job Market

The job market is the environment where employers and job seekers interact to fill and find employment opportunities. The script discusses the job market in the context of ghost jobs and their impact on the hiring process and job seeker experiences.

💡Hiring Intention

Hiring intention refers to an employer's plan or willingness to recruit and fill a job position. The script points out that ghost jobs lack genuine hiring intention, which can confuse job seekers and distort the true state of the job market.

💡Market Visibility

Market visibility in the context of the script refers to the public presence and awareness of a company in the job market. By posting job listings, even if they are ghost jobs, companies can enhance their image as growing and thriving organizations.

💡Job Boards

Job boards are online platforms or websites that list job vacancies and allow job seekers to search and apply for jobs. The script mentions popular job boards like Indeed, ZipRecruiter, and LinkedIn, and discusses concerns about their role in the proliferation of ghost jobs.

💡JOLTS

JOLTS stands for Job Openings and Labor Turnover Survey, a monthly report that provides data on job openings, hires, and separations in the U.S. The script references JOLTS to illustrate the complexity of understanding the labor market dynamics, especially in relation to ghost jobs.

💡Employer Branding

Employer branding is the image and reputation that an employer has in the job market, which can influence how potential employees perceive the company. The script suggests that companies posting ghost jobs may be damaging their employer branding by creating a misleading impression of job opportunities.

Highlights

John Doe's frustration with job listings that seem to have no intention of hiring.

The widespread issue of ghost jobs in the job market, affecting many job seekers.

Four in 10 companies posted fake job listings in 2024, according to a May survey from Resume Builder.

The rise of ghost job postings as an indicator of a cooling economy and hesitant employers.

Definition of ghost jobs as real company listings for non-existent openings.

Dramatic increase in ghost jobs over the past five years and the decline in hires to job postings ratio.

The impact of ghost jobs on the clarity of job postings and hiring intentions.

Comparison of ghost jobs to keeping Tinder profiles active for keeping options open.

Companies using ghost jobs for market visibility and brand perception enhancement.

Use of ghost jobs by companies for market research to gather salary and skill set data.

The negative impact of ghost jobs on employer branding and job seekers.

US job market slowdown in July 2024 and its implications on the labor market health.

JOLTS data indicating a tight labor market despite job seekers' struggles.

The disconnect between job market data and the real-life experiences of job seekers.

Ghost jobs complicating the job market analysis for the Fed and economists.

JOLTS data not using job listings for estimating job openings and its stance on ghost jobs.

Challenges for job seekers in identifying ghost jobs and the signs to look for.

The issue of ghost jobs on platforms like LinkedIn, Indeed, and ZipRecruiter.

Job posting platforms' responsibility and potential measures to address ghost jobs.

The potential long-term impact of ghost jobs on the labor market and job seekers' behavior.

Hypotheses and discussions in the financial community regarding ghost jobs and labor market trends.

Transcripts

Meet John Doe. He's in his early 20s and eager to jump into the

workforce. He sees a job listing that looks perfect to him.So he

brushes up his resume. He writes an awesome cover letter,

applies, and then waits and waits. So after a month or so,

he actually sees the same job posting relisted, which makes

him super frustrated.

John isn't alone. Many people are frustrated by applying to

these kinds of jobs that seem to have no intention of hiring

anyone.

If you are in the position of trying to find a new job, of

course, you don't want to waste your time applying for these

ghost jobs.

But it turns out, all those open job postings that you see online

might not even be real.

Ghost jobs are phenomenon that have existed for a long time,

but they've come to light much more in recent years, and

they've become much more of a significant issue in the job

market.

Four in 10 companies posted fake job listings in 2024, and three

in 10 are currently advertising for a role that isn't real,

according to a May survey from Resume Builder,

The rise of ghost job posting definitely points to a cooling

in the economy. We are seeing that employers are more hesitant

to make that higher, and it just points to the fact that demand

for telling is slowing down.

Here's why ghost jobs are on the rise.

Ghost jobs are actually not scams. They're from real

companies, but they are openings that don't actually exist. That

company is not actually hiring for that role at this moment in

time. They might be interested in hiring for that role in the

future, or maybe they were hiring for it, but due to budget

cuts, those roles were closed or put on hold.

A ghost job is essentially a job that remains open online and

never gets filled. The occurrence of ghost jobs has

increased quite dramatically over the past five years. We're

seeing a decline in the rate of hires to job postings, and that

rate has basically halved over the past five years. So whereas

in 2019 we saw eight hires per 10 job postings, we are now

seeing four hires per 10 job postings, which, of course, is

quite a dramatic drop.

This is a pretty worrying development, because it just

softens the signal of what a job posting really means and whether

there is truly a hiring intention behind that from the

employer point of view.

I think we're seeing a lot of ghost jobs lately for the same

reason that I think a lot of people keep their Tinder

profiles up, even if they're not actively looking for a

relationship. It's because we like to keep our options open

for you know whether it's a good or a bad thing, companies are no

different. Companies know that talent is not always available

when they are ready to hire, so they want to be able to attract

applications from potentially great candidates, even if

they're not right now able to give that person a job

Because of market visibility. if they are regularly listing their

job openings, that will enhance a company's image, potentially

showing them as a growing and thriving organization, and maybe

that's a signal to investors or clients or competitors that

their company is expanding the brand perception.

Market research. Some companies, they have no idea what is the

salary, what are the skill sets and demands, so they probably

are posting to get that data. What are you expecting as a

salary if you want to be in that role in this industry. So that's

why they're collecting those data, so that they can build a

total compensation package and build the key performance

indicator and net promoter scores for the companies if they

really don't know how the recruiting works. So maybe it's

for market insights to go into the future, but that does not

benefit to job seekers at all. That's such a bad employer

branding.

The US job market significantly slowed in july 2024. however, if

you look at the overall labor market, it's still healthy.

It's no question. This report came in cooler than expected,

but over the past three months, payrolls are up 170,000 that's

certainly a good enough clip to keep the labor market healthy.

Accordingto June's job openings and labor turnover survey,

commonly known as JOLTS, the number of unemployed persons per

job opening stands at point eight, indicating a tight labor

market.

Job openings in labor turnover known as JOLTS. Jolts coming in

near expectations, 8,184,000 actually, that's better than

expectations.

Despite a tight labor market, on paper, many workers are still

struggling to find jobs, indicating a disconnect between

the data and the real life experiences of job seekers.

The rise of ghost jobs is muddying the jobs report. It's

making it harder for the Fed to make decisions and understand

what the labor market looks like. Anecdotally, people will

tell you that it's very tough out there. We've talked about

this notion of unhireables. People who are out of work, got

laid off and just can't find a job. They can't buy an

interview. There are people coming out of college, and

they're finding that they are putting out 500 - 800 - 1000

applications, and they can't get an interview, let alone a job.

And yet, when you look at the base numbers on the job boards,

it would seem like we're in an incredibly robust hiring market,

and those ghost jobs are creating a fake perception, and

no one knows how fake that perception is. And the Fed and

economists are trying to understand what's real and what

isn't, and they haven't yet figured out the silver bullet to

understand.

Overthe past decade, JOLTS shows a marked increase in job

openings for any given level of unemployment, and this is making

people think, Oh, well, maybe these openings aren't real

openings. I would push back against that a little bit,

because JOLTS specifically asks employers to report only jobs

that they could fill within the next 30 days. Most ghost jobs,

that is, jobs that employers don't intend to fill that soon

or ever, either intentionally or by mistake, most of those

shouldn't appear in jolts at all.

TheBureau of Labor Statistics stated that the Jolts program

doesn't use job listings for estimating job openings. While

familiar with the term ghost jobs, the program believes it

does not have any data related to the phenomenon.

It's really hard as a job seeker to spot a ghost job. There are

some signs. If you look at a job and you see that it's been open

for over a month. Sometimes it might say it's been open for

many months. Some of the job boards will give an indication

of how many people have applied for a job. And so if you see

that a job has been open for 90 days and 10,000 people have

applied, putting your application in your 10,001 year

a number, it's probably a ghost job.

So my firm uncovered that there's 1.7 million job openings

on LinkedIn in 2023 as of the date of the article, that were

older than a month, and these we've determined to be potential

ghost jobs. They're not necessarily ghost jobs. And that

is the difficulty with ghost jobs is that they're hard to

fully prove. So there are ghost jobs out there for sure, they're

rising and they're a problem, but it's not always easy to

completely pin them down, and companies don't want to admit

that they're posting ghost jobs because it looks bad for them.

It's anti employee, it's anti job seeker, and it's very pro

company. So they want to be careful about that, so they're

not going to openly admit that they're posting ghost jobs.

Another red flag for a job posting that's potentially a

ghost job is when it's a vague job title. So for example, if

they say we're looking for a Video Superstar, or we're

looking for a Project Manager Superstar, or they use some sort

of identification that doesn't really say much, it could be an

indication that they are just keeping a job opening available

so they can attract talent and get a nice little pool of

potential talent that they can pull from when and if they do

need to hire.

Job boards are the most popular places for job seekers to find

opportunities. Indeed, ZipRecruiter and LinkedIn are

among the most popular job boards in the US. However,

there's growing concern that some of these platforms aren't

doing enough to address the issue of fake job postings.

Job posting platforms can address ghost jobs. The first

line of addressing them is taking full responsibility for

them, even if they're not the ones posting it. That's totally

understandable, but it's still their site. It's their platform,

and I believe they should take 100% responsibility. They should

be verifying, you know, they could implement an enhanced job

post verification method. So potentially, they're reaching

out to multiple people in the hiring process, an HR person, a

hiring manager, or verifying that person via social media.

I would love to see these job posting sites like LinkedIn,

ZipRecruiter, and Indeed, hold companies a little bit more

accountable for being transparent about how long the

listings have been up and how recently the position was hired

for. If they're going to continue to keep the listing up,

they should have options somewhere to say, We recently

hired this position. You can keep it up at that point, you

can make it clear that, hey, if you if you think you're a good

fit, go ahead and drop your application. Maybe, if this

doesn't work out, we'll reach back out to you.

CNBC reached out to a few major job posting platforms for

comment. LinkedIn stated that their job posting policy

requires posts to be genuine and accurate, and they're removed

after six months. Indeed, noted that some postings stay active

during ongoing searches or continuous hiring. And

ZipRecruiter stated that ghost jobs are prohibited under their

policies.

At the end of the day, when it comes to ghost jobs, I mean,

companies got to do what they got to do, and I think they're

willing to take that reputational risk if it means

they can attract the best talent and do what's best for them at

the end of the day.

What ghost jobs speak about the labor market is that it's not

currently friendly to job seekers, and companies are

taking advantage of the labor market. They're finding this

opening that's this legal gray area, and they're taking

advantage of it, and they don't need to be nice to job seekers,

because they think that they owe them nothing, and they think

that they'll be able to push the cost of their own employees down

with this, because there's a lot of sentiment online about it

being impossible to find a job right now. So why am I gonna

leave my job and try to find another job? So I think what

this might lead to, though, is job seekers doing the same thing

to companies like keeping the doors open for themselves and

looking for jobs the entire time they're working and having many

recruitment contacts, because that's what companies are doing.

They're always looking for the next step and they're worried

about themselves. Then that's going to create that same

sentiment with employees.

Right now, even JOLTS is giving us some confusing signals. The

discussion about ghost jobs is one of the ways that the

financial community is trying to understand these trends.

Unfortunately, we probably won't know whether these really are

permanent or temporary changes in the prevalence of ghost jobs

until after this cycle is over, and the more academic economists

sit there and really parse the data out. But right now, what we

have is a lot of hypotheses coming out of the people who are

watching the data very closely. Ghost jobs is one interesting

potential explanation for some of the more confusing patterns

that we're seeing in the labor market.