For most people, job searching consists of arduous hours researching companies and preparing applications. However, the question arises when these job applications turn out to be simply ‘ghost jobs’. According to a 2023 report from Clarify Capital, these ghost job listings fall into two baseline categories.
The first category encompasses jobs advertised by companies with no intention of actually hiring. These job posts project a growth image for the company or serve to appease overworked employees, gauge market salary demands, or generate a pool of potential candidates for future opportunities. The second category, often associated with strict and specific requirements, usually serves to fulfil legal or contractual obligations, used when companies have a chosen candidate internally but are legally obliged to advertise the position publicly, as is the case for federal contracting jobs.
The prevalence of ghost jobs varies greatly depending on who you consult. However, irrespective of its frequency, it leads to discouragement and job search burnout for job seekers. Although no current laws ban ghost jobs, any attempt at regulation would likely be a state issue, as local governments can better gauge their respective job markets. However, recent movements by the Federal Trade Commission (FTC) can’t be overlooked. Last month, the FTC garnered attention after voting 3-2 to ban employee noncompete agreements nationwide. This action shines light on the FTC’s mandate against false advertising, projecting possible legal action against ghost jobs.
In Ontario, Canada, a move by Labour Minister David Piccini aims to discourage ghost job postings. He proposes that larger companies should disclose whether they need to fill an employment position immediately or if they are simply collecting candidates for future positions.
For any effective regulation, employers should be allowed to remove obsolete job openings if unintentionally forgotten. Furthermore, rigid regulation could bear the risk of forcing employers into hiring unfit candidates, leading to wasted resources and potential dangers. Therefore, until effective policies are in place, job searchers must keep vigilant for ghost jobs and, if possible, establish contacts within desired companies for better leads. In an unfortunate reality, there is no certain way to discern ghost jobs from actual ones, and, thus, candidates must still apply despite the uncertainty.
Corporates do, indeed, seem to have incentives to post job openings without intending to fill them. Government bodies investigating ghost jobs would be beneficial to job seekers and deter wild goose chases. The mere announcement of an investigation should encourage companies to revisit their hiring strategies.
Steven Chung is a Tax Lawyer based in Los Angeles, California. Connect with him via Twitter, @stevenchung, and on LinkedIn.