About Those Job Listings…

It was gratifying to me to see this article in the Wall Street Journal by Te-Ping Chen. Guess what? Just as I’ve been saying around here for some time, a lot of the job listings are phonies:

A mystery permeates the job market: You apply for a job and hear nothing, but the ad stays online for months. If you inquire, the company tells you it isn’t really hiring.

Not all job ads are attached to actual jobs, it turns out. The labor market remains robust, with 10.8 million job openings in January, according to the Labor Department. At the same time, companies are feeling budgetary strains and some are pulling back on hiring. Though businesses are keeping job postings up, many roles aren’t being filled, recruiters say.

Hiring managers acknowledge as much. In a survey of more than 1,000 hiring managers last summer, 27% reported having job postings up for more than four months. Among those who said they advertised job postings that they weren’t actively trying to fill, close to half said they kept the ads up to give the impression the company was growing, according to Clarify Capital, a small-business-loan provider behind the study. One-third of the managers who said they advertised jobs they weren’t trying to fill said they kept the listings up to placate overworked employees.

Other reasons for keeping jobs up, the hiring managers said: Stocking a pool of ready applicants if an employee quits, or just in case an “irresistible” candidate applied.

I don’t know how to disaggregate the various reasons that companies post phony job listings which include they’re fishing, they’re trying to placate their own employees, they’re making a care for H1-Bs, and they’re trying to convince investors they’re growing faster than they actually are. But the message is clear: don’t believe them.

6 comments… add one
  • steve Link

    Online advertising changed things. I have ads up that are over 3 years old. I paid a premium rate to have them posted in a prominent place ie the first page for a set period of time and renewed them a time or two for a total of 3-4 months. They then rotate to the back pages where they stay for no charge until they finally go away due to the (arbitrary AFAICT) page limit. Its a minor hassle having them stay there because recruiters occasionally email and ask if I am still looking to fill the job. However, I have not asked to have them removed, which they will do if asked, since it keeps our group name up in the ads so we have name recognition. So on paper it looks like I am looking for about 40 people but in reality about 10.

    Steve

  • Drew Link

    I believe the article. But I question the magnitude of the issue.

  • They say that 20% to 30% of all job listing are phony. I think in some sectors it’s more.

  • Drew Link

    Like I said. I just find that high. It simply is not consistent with personal experience. They can say anything they want. I don’t know how they rigorously analyze it.

    In any event, I don’t see this as an existential issue.

  • The issue is that job listings are used to formulate policy. Either they should be ignored or they should be “weighted” to take phony listings into account. We’re making bad policy based on weak assumptions.

  • Drew Link

    I understand, Dave, but I think that Fed policymakers do know, and understand. Politicians? I doubt it. Pedal to the metal.

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