FORECASTS & TRENDS E-LETTER
By Henry Rohlfs
September 17, 2024

IN THIS ISSUE:

Fake Job Listings Exist
Darker Reasons for Fake Job Posts
Can You Tell a Fake?
Most Companies Do Follow Up
A Final Thought

Before I get into this week’s topic, a nod to the Fed Open Market Committee must be made. The September FOMC meeting starts today, with the much-anticipated announcement of a 25-basis point interest rate cut occurring tomorrow.

Last week, the Bureau of Labor Statistics released the August read of the Consumer Price Index. On an annual basis, the CPI fell to 2.5%, marking a decrease from July’s report of 2.9%. This level now matches the headline Personal Consumption Expenditure index of 2.5% as announced by the Bureau of Economic Analysis on August 30.

As we reported August 27, it appears the Fed now turns its attention to employment numbers, the second part of its dual mandate.

In researching employment information, I ran across a topic about job listings – fake ones. I have to say I was floored that companies are actually advertising fake jobs. Some of the reasons might be legitimate, while others are clearly not.

Read their reasons for using this tactic and let me know what you think.

Fake Job Listings Exist

A recent survey of hiring managers indicates as many as 4 in 10 companies say they have posted a “fake job listing” this year. Nearly 3 in 10 say they are currently advertising an open position that doesn’t actually exist.

These fake jobs are commonly used to collect resumes the company can use for future open positions.

But don’t confuse this practice with job scams that criminals use to collect applicants’ personal information. Legitimate hiring managers are often behind these “ghost jobs.”

The strategy, frustrating as it is, isn’t entirely new, says Stacie Haller, chief career advisor at Resume Builder.

This is a common practice used by temp agencies that “constantly need new talent and are always running new job ads because, if a client needs someone, they need [a candidate] who’s already vetted,” Haller said.

But now she reports seeing “more traditional corporate companies are doing this more.”

While seven in 10 hiring managers say that they believe the practice is morally acceptable and beneficial for business, it complicates job seekers' searches for work and can also erode their trust in companies.

Of the companies that engaged in the practice, 45% posted between one to five fake job listings; 19% posted 10; 11% posted 50; 10% posted 25; and 13% posted 75 or more. The roles spanned all levels of seniority, from entry level openings to executive-tier jobs.

Darker Reasons for Fake Job Posts

But there are other reasons companies are running these deceptive ads.

First, some aim to trick current employees into thinking that the business is not only growing, but also making an effort to hire more workers and alleviate their existing workloads.

Others said their goal is to signal to current employees they are replaceable.

"They may do it to suggest that they're hiring so if you're an employee you'll think, 'We'll relieve you of your workload'," Haller said. "It may also be to say, 'We're a growing company.' On the darker side, it could be to say, 'We're looking to replace you, so you better work harder'."

When these nefarious intentions are exposed, the consequences can severely affect a company's recruiting efforts.

"It will definitely hurt your reputation, because I don't know anyone who wants to work for a company that lies to them," Haller said. "And if employees find out, in today's world, everyone knows everything — people talk."

Can You Tell a Fake?

It can be hard to distinguish between real and fake listings, particularly when a company decides to go through the rigmarole of interviewing applicants. And even if a hiring manager keeps your resume on file, perhaps for reference at a later date, a post is considered fake if the company has no intention of immediately filling the role.

For that reason, job posts that have been active for longer periods of time, such as months, might be disingenuous, according to Haller. If a role's salary range is overly broad, that could also indicate the company is not serious about filling the role.

First, check when the job was listed, Haller says. If it’s been up for a few weeks, there’s a better chance it’s actually active than if it’s several months old.

Second, check the company’s website and see if the job is posted there. If so, try applying directly through the portal.

Finally, use the online post to find the hiring manager and send an email or LinkedIn message to express your interest, provide your resume and mention that you’ve applied through the company’s official hiring channels.

Many job sites are also helpful to network and build professional connections, which can lead to job opportunities, Haller adds.

Most Companies Do Follow Up

Despite the hiring practice, Haller says there’s one small bright spot when recruiters post fake jobs: Of companies that listed a non-existent opening, 84% say they either always or sometimes contact applicants who submit their information. And of companies that contact applicants, 85% say they go ahead and interview candidates, even if it’s not for an immediate opening.

“In many instances, those people do get looked at, and they can get hired in the future,” Haller says, either once an opening is available, or perhaps if the company’s next hire doesn’t work out.

“The bottom line is, many times, if you are interested in the company and you’re a good match, then when there’s something available, they’ll call you,” she adds. “It just might not be today.”

A Final Thought

I am an avid podcast listener and probably hear 10 or more hours of content each week. One of my favorites is The Journal, published by WSJ (yes, that WSJ). You can find it each weekday afternoon on Apple, Spotify or most podcast platforms.

A couple of weeks ago, they aired A Fed Insider on the Looming Rate Cut, an interview with Mary Daly, president of the Federal Reserve Bank of San Francisco and a member of the FOMC. She spoke quite candidly about inflation, unemployment and the economy, and even mentioned Taylor Swift. Take a listen – it will be worth your time.

All the best,

[Henry]

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