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The other thing that is often odd is they place an ad for a position and list very specific domain knowledge and they say 'before we will consider you, you need do this arbitrary four hour on line coding test'. Here in Sydney we have a couple of trading firms complaining they can't get staff. I often think now, being able to confidently do the job needed very well, is not a primary requirement. When I say well, I mean, well coded, well documented, good design, not just able to solve the algorithm at hand. Are we short of good programmers or do we have to many?

Not to mention they are still asking for references.

Big yikes, Firebase.

You should notice who says there is a shortage: employers. And what they mean, is that they can't find enough people to hire, meaning that few people satisfy their hiring criteria. This does not mean that few people apply, it means that their hiring process eliminates almost anyone.