Why ‘Ghost Jobs’ Are a Problem For Businesses, According to Experts

Looking for a new job might lead you to stumble upon a “ghost job” – a position that appears legitimate but is not actually intended to be filled by a candidate. As per recent data from the U.S. Labor Department, there were approximately 8.1 million vacant job listings in the country in May. Yet, a fraction of these listings could be fake, with companies admitting to posting them for reasons such as enhancing their reputation, managing current staff, and gathering potential candidate information for future openings.

Surprisingly, companies openly engage in this practice. A study by Resume Builder in June discovered that three in 10 online job postings are for non-existent roles. Revelio Labs, a workforce intelligence firm, noted a 120% increase in instances of “recruiter ghosting” over the past five years, where companies fail to respond to applicants.

Although around 70% of hiring managers don’t see a problem with posting ghost jobs, research reveals that a significant portion of job seekers finds this practice frustrating. A survey by Stand Out CV conducted in 2023 showed that, on average, individuals need to submit 162 applications to secure a job and 27 applications to receive just one interview. With a fraction of these applications being for fake jobs, it leads to a considerable waste of time for job seekers.

Reasons Behind Fake Job Postings

For businesses, posting ghost jobs can create an image of being open to external talent (67%) and signal growth (66%), as indicated by the Resume Builder survey. Such actions help hiring teams gauge the availability of specific skill sets in the market, enabling them to forecast hiring timelines accurately.

These misleading postings not only deceive job seekers but also mislead current employees. In the same survey, 62% of companies admitted to using fake listings to show employees they are replaceable, while 63% suggested that it would ease employees’ workload by recruiting new staff.

Stacie Haller, Chief Career Advisor at Resume Builder, expressed concerns about this trend, emphasizing that employees deserve honesty from the organizations they dedicate their time to. Actions that diminish an employee’s value and security are unethical and harmful.

Impact and Concerns

The prevalence of ghost jobs can greatly distort job market data, leading to false hopes and inflated expectations among job seekers and impacting the economy. This practice is widely criticized by hiring experts for being unfair to applicants and employees, as well as for resulting in negative reputational consequences for companies.

Cramer, an industry expert, highlighted that platforms like Glassdoor allow job seekers to share their experiences, potentially dissuading future applicants if they believe a company wastes their time. Additionally, ignoring qualified applicants could lead companies to miss out on top talent, as candidates are unlikely to reapply after being neglected.

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