in re there’s something wrong with the labor market

In a recent article on Business Insider, there is a great economics overview of what it means to have 5.8 million job openings when the US economy has 5% unemployment – that is to say, lots of job openings and low unemployment.

It didn’t cover, however, the economics of job opening. As a matter of fact, it gave itself the opportunity to do so when it explained that this phenomenon could mean there is a mismatch between what employers are seeking versus what employees can offer. Yes, there might be a large gap. But unlike in the past, job openings cost less to have open than before. They can essentially be open for free forever and they can collect CVs even when they are not actively seeking to replace or fill a role. As a matter of fact, employers can simply have a job opening for every role in the firm at all times.

The forever job opening is happening to some degree. There are posting for entry level jobs from five years ago cuz, well, why not. If you are collecting CVs and purging them as they reach their 6 month anniversary, then thry have an ongoing active list of jobseekers when the current employee leaves.


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