Add/remove CRON action depending on variable

I am not sure why the remove_action isn’t working because by the looks of your code, it should. Alternatively, you can add the conditional logic to your generate_sitemap() 

function generate_sitemap() {

    global $create_sitemap;

    if ( $create_sitemap ) return false;

    $sitemap = '<?xml version="1.0" encoding="UTF-8"?>';
    $sitemap .= '<urlset xmlns="http://www.sitemaps.org/schemas/sitemap/0.9">';

    // Get a query of all jobs that are available
    $all_jobs = new WP_Query( array( 'post_type' => 'job_listing', 'post_status' => 'publish', 'posts_per_page' => -1 ) );

    // Add the URL and last modified time (in GMT) to the sitemap
    foreach( $all_jobs->posts as $post ){
        $sitemap .= '<url>';
        $sitemap .= '<loc>' . get_the_permalink( $post->ID ) . '</loc>';
        $sitemap .= '<lastmod>' . date( 'c', strtotime( $post->post_modified_gmt ) ) . '</lastmod>';
        $sitemap .= '</url>';
    }

    $sitemap .= '</urlset>';

    // Write the sitemap to yoursite.com/job-sitemap.xml
    $fp = fopen(ABSPATH . 'job-sitemap.xml', 'w');
    fwrite($fp, $sitemap);
    fclose($fp);
}

Make sure $create_sitemap is accessible within the function.

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