This is a natural side-effect of both sides "cheating" to the point that genuine and legitimate efforts are punished and "gaming the system" is encouraged and rewarded. Come to think of it I think it's basically a variant of "tragedy of the commons". In the sense that some actors exploit the weaknesses of the market due to their self-interest and as a result disrupt the signal to noise ratio of the market and damage it for the other participants.

Once this exceeds a certain amount it will accelerate because more and more people reluctantly start gaming the system to avoid the penalty.

The more automation and AI and bulk/mass stuff is thrown into it the worse it will get (since you get to put a multiplier behind any bad behaviour). When it was slower and more expensive to participate in the job market it was better.

You can find parallels to this in other areas such as the dating market.