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How can you "overproduce"? As long as the factory is profitable and I have the pops with qualifications, it should hire.
Price was high, that's why I was building the factory up so much. And that state had lots of unemployment. It was still profitable when it was trying to hire. The tooltip said that hiring any more would reduce productivity to 0, which made no sense.
The algorithm to hire workers is a complex theme and it got worse with the latetest updates. (We don't know if it works as intended or if it is bugged). There are some interesting threads on reddit about this topic, too.
In general the game will try to hire up to 10% of the total worker capacity per week. Your factory has size 30, so (depending on production methods) 10% may be up to 15K workers, adding demand of input goods and production of output goods for ca 3.9 factories (3 factories + 30% throughput). The game calculates the expected change in local market prices for this increase in demand and supply. Both the increased (local) demand for input goods and the increased (over)supply with output goods will change (local) prices to the disadvantage of the factory's revenue, especially since these changes in prices apply to the whole factory production and not only the newly added production. Reduced revenue will lower the wages of workers (which may affect SoL and demand of some consumer goods.) If the expected revenue of the factory or the calculated wages drop too much, the game won't hire workers or will only hire a small number of workers.
You can try to build up more (local) production of input goods and more (local) demand for output goods to keep the factory profitable.
You can use trade routes to (temporarely) increase supply with input goods and demand for output goods to make the factory more profitable.
See https://vic3.paradoxwikis.com/Market for how market prices are calculated.
If you click on the building, there's a tab called workforce which will break down their average wages and the recruitment attempts, perhaps if you look around you will get more insight on what the hiring obstacles are.
One last tip, with a small population if you introduce mechanized production methods to other factories, while it may lower productivity slightly in the short term it will free up many laborers who can disperse to other sectors of industry and increase the overall GDP.
EDIT btw, I'm just playing the tutorial (after multiples campaigns on my own) and it mentions this warning, if you haven't seen it:
'But before you go and expand all your buildings, remember that there is a cost to expanding buildings and not all buildings are suitable for expansion. You will learn more about how to identify suitable candidates for expansion in upcoming tutorial challenges. For now, expanding agricultural buildings is a safe bet'
These share the free agricultural land with subsistence farms. If you build a new farm, the subsistance farms on that land are removed and the homeless people have to find a new job, so it is much easier to have them join your farms and factories.
Downside is that under most laws agricultural buildings contribute less than factories to the investment pool and the owners are usually conservative aristocrats who will be strengthend and then likely block your progressive reforms.