City in Montana wants job applicants’ passwords to social websites

As reported by the associated press: “Job applicants with the city of Bozeman are finding that their private Internet discussions and pictures may not be so private after all.
The city is asking job seekers for the user names and passwords to Internet social networking or Web groups to which they belong. The decision is sparking an outcry from those who say the policy goes way too far.”

Why would an employer ask for such information? What benefits an employer can get from knowing your online habits? Do they want to know your personality by analyzing your online habits?
I am sure many of us, including myself, are outraged by hearing such news, but wait a minute…..aren’t companies already using such practices? Many employers want to check your credit history, your martial status and even run a background check on you.
This news created a negative publicity for the city and strong objection by the public, but it’s a clear sign of how the internet and social websites are shaping our lives.