Everyone is training new CFIs but where are they all supposed to work?

Something about the “zero-to-hero” flight school model just doesn’t add up to me.
So many schools advertise the same path: start from zero, get your commercial and CFI, then instruct to build hours until you can move on to the airlines. It sounds straightforward until you think about where all those new instructors are supposed to work.
Getting your CFI doesn’t automatically mean your school will hire you. Say a school produces 10 new CFIs but only has room to hire one or two not actual numbers, just an example. Everyone else has to find a job somewhere else, potentially at schools that are also producing their own instructors.

That’s the part that bothers me. The whole setup seems to depend on more students coming in behind you so you can teach them, build your hours, and leave. Then those students become instructors and need another group of students behind them.
I’m not saying it’s literally a pyramid scheme, but that cycle gives me a similar feeling, especially when the training is sold as a clear career path without much discussion about what happens if you finish and can’t find an instructing job.
Obviously, not every graduate can expect a guaranteed position. But there’s a difference between selling flight training and selling the impression that the next step will naturally fall into place.

What do you guys think? Is this a reasonable concern, or am I missing something about how the instructor job market actually works? I’d especially like to hear from people who finished their CFI and then had to figure out what came next.

https://redd.it/1wyn4va
@r_aviation