'Ghost Jobs' Distort Labor Data And Mislead Job Seekers In The U.S. Market

Benzinga

Despite strong labor data, millions of U.S. job openings may be “ghost jobs,” exaggerating employment strength. CNBC reports many postings don’t reflect real hiring intent, as job openings fall and the quits rate declines sharply from pandemic-era highs.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03The U.S. labor market appears strong on paper,

00:06but millions of job openings may not be real, according to CNBC.

00:10Since early 2024, openings have exceeded actual hires by more than 2.2 million per month,

00:17suggesting widespread ghost jobs, according to Bureau of Labor Statistics.

00:21Data career expert Jasmine Escalera told CNBC that inflated postings mislead job seekers

00:27and distort data used by policymakers.

00:30U.S. job openings have fallen from over 12 million in March 2022 to 7.2 million in August,

00:36with hires at 5.1 million, bringing vacancies roughly in line with available workers.

00:41The openings-to-hire ratio has declined from 1.8 to 1 to about 1.4 to 1 in recent years,

00:47signaling a reduction in ghost job postings.

00:49The National Federation of Independent Business said 88% of small businesses report applicants lack needed skills.

00:56Job seekers are increasingly discouraged as finding new positions becomes harder,

01:00with the quits rate down over 30% since the 2022 Great Resignation Peak.

01:06For all things money, visit Benzinga.com.

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