Rejected. Definitely Rejected.
Companies are getting super creative in how they humanely reject candidates. Often, companies state that they recognize the candidate’s experience and value but decided to move in another direction. That may be true, as “not you” qualifies as another direction and it just feels kinder. Some will go further and state that they’ll keep your resume on file for when a better role opens up. And, other Companies are now asking for surveys on the “candidate experience” after you receive a rejection. Or whatever it is these new polite rejections can be categorized as. Candidates are not looking for “You suck – we would never ever hire you if you were the last unemployed person on earth” but something in the middle and closer to honesty is preferable.
Learning: Rejections are part of applying for jobs—sadly, there is little to learn from them. Connections, perseverance, and resilience will get you the next opportunity and will most likely make you awesome at it.
If a company truly wants to help candidates without offering them the position, they should extend the offer to meet with the candidate, review their resume, and provide constructive feedback. That isn’t easy to do when you have 600 candidates applying, but if you are asking a candidate to go through 5-8 rounds of interviews, then it is the least you can do.