AI and the Job Market: Will Artificial Intelligence Devour Graduate and Job Seeker Opportunities?
The Labor Market and Artificial Intelligence: Modern Employment Challenges
The labor market is suffering greatly, as young people find it very difficult to get jobs, while companies increasingly use Artificial Intelligence in their recruitment processes. Harry, a recent graduate, began his job search months before graduating. Despite his strong resume, which included a paid internship, years of volunteer work, experience in various fields, an excellent GPA, and strong letters of recommendation, he applied for 200 jobs and was rejected every time, or did not receive a response from many companies.
Millions of job seekers face a similar situation. Although corporate profits are strong, unemployment rates are low, and wages are rising, the number of new jobs has remained almost constant in the past four months. The hiring rate has fallen to its lowest level since the recovery from the Great Recession. While companies were adding four or five employees for every 100 employees they had four years ago, they are now adding three only.
Increasing Reliance on Artificial Intelligence in Recruitment
At the same time, the job search process has turned into a nightmare due to modern HR practices. Online job platforms have made it easier to find job opportunities, but harder to get them. Applicants send thousands of AI-crafted resumes, and companies use Artificial Intelligence to screen them. This situation is similar to what happened in the dating market, where people browse a large number of options without getting any results.
Harry regularly applied for jobs that seemed suitable, tailoring his resume and writing personalized cover letters, but he received no response. Martine, a paralegal who was laid off, described similar experiences. Despite over 10 years of experience and applying for dozens of positions, she could not secure a job.
On the other hand, companies face an enormous influx of unsuitable applications, along with a small number of good applications for each vacancy. Instead of manually reviewing applications, companies use Artificial Intelligence. HR executives have indicated their use of AI in writing job descriptions, evaluating candidates, scheduling initial meetings, and assessing applications. In some cases, companies use chatbots to conduct interviews, where candidates interact with an avatar via a Zoom-like system, and their performance is recorded and analyzed by an algorithm that searches for keywords and evaluates tone of voice.
Statistics: Statistics indicate that the global market size for AI in recruitment was estimated at approximately $661.56 million USD in 2023, and is expected to grow significantly in the coming years, confirming the increasing reliance on these technologies. (DemandSage). Furthermore, 85% of employers who use automation or AI believe it saves time and increases efficiency, while 86.1% of recruiters using AI reported that it speeds up the hiring process. (SHRM). In the UK, the use of AI in recruitment tripled last year, with approximately 3 out of 10 employers using it in 2023, compared to 1 out of 10 in 2022. (Standout-CV).
"Tinder Hell" of the Job Market: A Vicious Cycle of Applications and Rejections
Priya Rathod, a recruitment trend expert at Indeed, believes that online platforms make it easier for people to find vacancies, and that Artificial Intelligence can accelerate the process of reaching interview stages if their applications match employer needs. However, many job applicants do not reach the human interaction stage. The difficulty of reaching the interview stage prompts job seekers to submit more applications, leading them to rely on ChatGPT to generate their resumes and answer screening questions. This cycle continues: the increase in similar AI-crafted applications leads employers to use robotic filters to manage the influx, making the job search process akin to "Tinder Hell".
Economic Challenges and Their Impact on Workers
The economy has been in a state of balance between low hiring and low layoffs for several months; almost all sectors of the labor market have frozen except healthcare. The average time workers spend searching for a job has risen to 10 weeks, meaning Americans are spending two additional weeks in the labor market compared to the past few years. The percentage of American workers leaving their jobs has fallen to its lowest level in a decade, due to concerns about rising prices and anxiety about slowing growth.
This balance seems to be breaking down, and a full recession is likely. Black workers have seen a significant increase in unemployment, partly due to mass layoffs of federal employees. More than 10 percent of workers under the age of 24 are looking for work. Lydia Boussour of the consulting firm EY-Parthenon notes that "performance-based and strategic layoffs are increasing, and cracks are increasingly appearing".
Tips for Job Seekers in the Age of Artificial Intelligence
What are workers supposed to do? Martine and Harry and millions like them are still trying to figure it out. Martine continues to apply for jobs, while Harry does landscaping and volunteers. Rathod recommends traditional recruitment: inviting recruiters for coffee, attending in-person job fairs, and polling friends and former employers for opportunities. These strategies might work if companies start hiring again. But if not, millions of people may be submitting their resumes into a void.
myhome
https://www.aymany.com/
