A Record Number of Job Seekers Are Struggling to Find Work. The Problem? Ghost jobs in the labor market may not be real.

From tech hubs in California to urban centers across Ontario, a strange paradox is playing out in the labor market. Official numbers paint a healthy picture: unemployment in the U.S. hovers around 4%, while Canada’s stands at 7%. This is not ideal, but not catastrophic either. Online job boards like LinkedIn and Indeed are brimming with open roles across industries. However, behind the numbers lies a quieter crisis. For many job seekers, the jobs simply don’t exist.

Thousands of qualified candidates—fresh college grads and seasoned professionals alike—are spending months applying to hundreds of jobs. They receive little more than a form-letter rejection, if any response at all. Despite the supposedly “tight” labor market, the lived experience of many suggests something closer to a hiring drought.

“The job market feels completely broken,” said Toronto-based marketing specialist Alyssa N. She has submitted over 300 applications in the past four months. “I’ve got a master’s degree, years of experience, and I’m applying to entry-level positions—and still, nothing.”

The Ghost Job Phenomenon

It turns out there may be a very real reason for the silence: the jobs don’t exist.

According to a recent ResumeBuilder.com survey, 40% of companies admitted to posting job listings for positions they weren’t actively trying to fill. Some 30% still had active listings for those “ghost jobs,” even months after initially posting them. Among hiring managers surveyed, 70% believed the practice was “morally acceptable.”

The motivations for this range from cynical to strategic. Some companies post openings to collect resumes and build a future talent pipeline. On the other hand, others admit to using listings to project growth and vitality to investors—moves that could influence stock prices or investor confidence. Internally, companies may use these posts to manipulate employee behavior. This could make workers feel expendable or ignite competition for promotions.

“There are clear incentives,” said labor economist Dana Ricci at the University of Michigan. “Companies can manage employee expectations and pressure workers to accept lower raises or titles. Additionally, they can inflate their perceived growth to external stakeholders.”

Is That Securities Fraud—or Just Strategy?

In some cases, job seekers are even being called in for interviews for roles that never existed. This is an illusion meant to sustain appearances. While hard to regulate, some labor analysts argue that intentionally misleading the public and investors through fake hiring could raise ethical and possibly legal red flags.

“It walks a fine line,” Ricci said. “If you’re materially misrepresenting your company’s growth to move stock or investor sentiment, you’re skating toward securities territory.”

Hiring in the Age of the Algorithm

Even when jobs are real, applicants face another obstacle: the machines.

Today, most large companies use Applicant Tracking Systems (ATS). This software screens resumes before a human ever lays eyes on them. These tools scan for keywords, qualifications, and formatting quirks, often rejecting otherwise qualified candidates for failing to match predetermined language.

“If your resume doesn’t match the exact phrasing of the job listing, you might never make it past the algorithm,” said Chicago-based recruiter Marissa Klein. “It’s not just about what you know anymore—it’s about how well you can reverse-engineer the system.”

The result? Hundreds of viable candidates fall through the cracks daily. They are rejected not for their abilities but because they fail to play an invisible game of resume Tetris.

A Labor Market Built on Illusions

There’s also a data problem. The unemployment rate—while a useful metric—paints only part of the picture. It counts only those actively seeking work, excluding part-timers unable to find full-time employment. It also excludes gig workers hunting for stability and those who have simply given up.

By that standard, a graduate with an MIT engineering degree flipping burgers three nights a week is still “employed.” But as Ricci notes, “There’s a big difference between employment and gainful employment.”

A broader measure—known as the underemployment rate—is significantly higher. It paints a far more sobering view of labor market health.

Why This Matters

While companies tout innovation and efficiency, these hiring practices come at a cost. They waste time and emotional energy of job seekers, distort economic statistics policymakers rely on, and exacerbate economic inequality. Moreover, they privilege well-connected or well-informed applicants.

According to ResumeBuilder, 68% of hiring managers said ghost listings had a “positive impact” on company revenue. Another 65% said employee morale improved as a result. However, it’s unclear whether that’s due to real improvement or the illusion of relief.

“It’s an exploitative strategy,” said Klein. “And it’s becoming normalized.”

What Workers Can Do

In a world of algorithmic gatekeepers and phantom opportunities, job seekers are advised to take proactive measures:

• Network Relentlessly: Personal referrals remain one of the most effective ways to land interviews—and bypass automated systems altogether.
• Tailor Every Resume: Use keywords from job descriptions and avoid over-formatting, which can confuse ATS software.
• Avoid Red Flag Listings: Jobs posted for months without being filled. Vague descriptions and repeated reposts are all warning signs of ghost jobs.
• Think Local and Face-to-Face: In-person job fairs, community events, and networking meetups can offer real connections. This is important in an increasingly virtual hiring world.
• Explore Entrepreneurship: As traditional pathways falter, more workers are turning to freelance or business ventures. This allows them to regain control over their income and time.

“There’s no doubt the current system is flawed,” said Ricci. “But there are still ways to succeed—especially for those willing to adapt.”

The Bottom Line

For all the optimism baked into monthly jobs reports, the labor market of 2025 is as much an illusion as it is a reality. A glut of job listings has become less a sign of opportunity and more a corporate mirage—a carefully curated narrative of abundance that collapses under scrutiny.

Until policymakers, economists, and the public demand more honest metrics—and more responsible hiring behavior—the job hunt will remain, for many, a frustrating exercise in futility.