An update on the hidden job market

The work we find can often be attributed to our social connections - and inheritance factors. Those with wealth and power are more likely to have family or social networks which provide valuable career opportunities (Inkson et al., 2015). Further, "a well-established network can significantly increase the chances of being considered for job openings that might not be publicly advertised" (Otami & Amah, 2024, p. 55).

Digital platforms, such as LinkedIn and Facebook, are increasingly being used to share work opportunities. It is suggested that the "hidden job market" is where "job openings are [not] publicly advertised, [with] positions [being] filled through internal referrals or connections" (Otami & Amah, 2024, p. 56). It seems that 'good' personal networks are supposed to allow us access to the hidden job market. Further, we are only likely to hear about those 'hidden jobs' if we are connected to a wide range of people, working for a wide range of employers in our local area.

While I have explored the hidden job market before (here) this market may not be focused on the employee's networks. Careers New Zealand adds some interesting nuance to this idea: that it is where employers fill vacant roles "using their connections and networks instead of through advertising" which apparently forms around 70% of filled positions (2025). Sigh. There is that potentially mythical 70% being bandied about again.

Norwegian recruiters reported they felt that the hidden job market formed "40-70% of the total [job] market" (Zubovic, 2018, p. 39), which appears more inflated than "the [examined] literature which stated somewhere between 30 and 50%" (Zubovic, 2018, p. 39). I got excited when Zubovic cited Rees (1966) and Granovetter (1973) specifically, and collected those papers to read them. However, both were a fizzer.

Neither Granovetter (1973) nor Rees (1966) talk about the hidden job market per se: Rees doesn't talk about the hidden job market at all; just mentions that there is "additional hidden or disguised unemployment, represented by the people who, on balance, have been discouraged from entering the labor force" (p. 31); no mention of any percentages.

Granovetter explores diffusion studies; our social networks via "weak" triad ties (1973). This is where we know someone who knows someone, who knows someone: I know Jo, who knows Kim... so if I tell "a rumor to all [my] close friends, and they do likewise, many [of my friends] will hear the rumor a second and third time, since those linked by strong ties tend to share friends" (Granovetter, 1973, p. 1366). Granovetter reported that "American blue-collar workers find out about new jobs more through personal contacts" (p. 1371), and, when job information was tracked back to the source, "in 39.1 % of the cases information came directly from the prospective employer, whom the respondent already knew; 45.3% said that there was one intermediary between [themselves] and the employer; 12.5 % reported two; and 3.1 % more than two" (p. 1372). This is a close to 85% effective network where we are either connected to the employer we are seeking employment with (strong tie); or we are in a triad (weak tie), with one degree of separation (Milgram, 1967) from the person who can make that hiring decision. I don't see that this is a hidden job market. I read this as how we heard about the job - via short paths - not that the jobs were not advertised.

It was noted that younger people were more likely to be "using formal intermediaries (agencies, advertisements) than to those hearing through short paths" and who were more likely to be in less satisfying employment with less skill optimisation (Granovetter, 1973, p. 1372). This too is not a hidden job market: it is a missing network.

It appears there is still no literature that supports the hidden job market.

Sam

References:

Careers New Zealand. (2025). Researching job opportunities in New Zealand. https://www.careers.govt.nz/job-hunting/new-to-new-zealand/researching-job-opportunities-in-new-zealand/

Granovetter, M. S. (1973). The Strength of Weak Ties. American Journal of Sociology, 78(6), 1360-1380. https://doi.org/10.1086/225469

Inkson, K., Dries, N., & Arnold, J. (2015). Understanding Careers (2nd ed.). SAGE Publications.

Milgram, S. (1967). The small world problem. Psychology Today, 1(1), 61-67. https://doi.org/10.1037/e400002009-005

Otami, A., & Amah, E. (2024). The Role of Social Networks in Job Search and Career Development. International Journal of Social Sciences and Management Research, 10(2), 52-62. https://doi.org/10.56201/ijssmr.v10.no2.2024.pg52.62

Rees, A. (1966). Now Is the Time to Lick Hard-Core Unemployment. Challenge, 14(6), 29-41. https://doi.org/10.1080/05775132.1966.11469880

Zubovic, E. (2018). The Role of Social Capital in the Search for a Job: A qualitative study investigating “the hidden job market” on Sørlandet. [Master's thesis, University of Agder]. https://uia.brage.unit.no/uia-xmlui/bitstream/handle/11250/2562203/Zubovic%2C%20Edin.pdf?sequence=1