What the rise in fake job postings says about the current job market – NBC Connecticut

Legitimate companies are increasingly posting fake job listings, often referred to as “ghost jobs.” According to a May survey conducted by Resume Builder, four in 10 companies will have posted fake job listings by 2024, and three in 10 companies are currently advertising a position that is not real.

“Ghost jobs aren't actually scams. They come from real companies, but they're positions that don't actually exist,” said Geoffrey Scott, senior content manager and hiring manager at Resume Genius. “The company isn't actually hiring for that position right now. Maybe they're interested in filling that position in the future, or maybe they hired, but due to budget cuts, those positions have been closed or put on hold.”

Revelio Labs, a US-based workforce intelligence company, found that the rate of hires per job posting has essentially halved over the past five years. In 2019, there were eight hires per ten job postings. By 2024, that number had dropped to four hires per ten job postings.

“I think this is a pretty worrying development because it weakens the meaningfulness of a job posting,” says Lisa Simon, chief economist at Revelio Labs. “And whether, from the employer's perspective, there is actually an intention to hire,” Simon adds.

It is important to note that while the U.S. job market slowed significantly in July, the overall labor market remains healthy. According to the June Job Openings and Labor Turnover Survey, there are 0.8 unemployed people per job opening, indicating a tight labor market.

“The rise in bogus jobs is clouding the jobs report. It's making it harder for the Fed to make decisions and understand the labor market,” said Dan Kaplan, senior partner at Korn Ferry, a human resources consulting firm. “People say it's very tough out there. We've talked about the concept of the unhirable. People who are unemployed are being laid off and just can't find a job. They can't buy an interview.”

Watch the video Read above to learn why the number of ghost jobs is increasing and what this trend says about the current job market and the overall economy.