AI’s Role in Recruiting
Hello and? welcome back to the Recruitonomics Newsletter! This week, we dive into the impact of AI in recruiting, and what exactly job seekers are expecting from the new technology.?
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This Week on Recruitonomics:?
The Impact of AI and Automation on Recruitment Dynamics
AI swept the national consciousness a little over a year ago, and the technology is already becoming firmly entrenched in the relationship between recruiters and job seekers. The latter uses the tech to craft cover letters, resumes, and prepare for interviews. Meanwhile, the former leverages AI and automation to create job ad copy, swiftly screen resumes for essential skills, and streamline the initial communication processes. When done correctly, this has the potential to introduce never-before-seen efficiency to the job search process. However, critical questions arise, and the time to ask them is at the very inception of this trend. Does the widespread incorporation of AI in recruitment processes lead to improved outcomes? Could the extensive use of AI and automation potentially compromise personal connections, thereby affecting candidate satisfaction negatively? Lastly, in which steps of the recruitment process does AI prove genuinely beneficial, and where should humans retain their decisive advantage? As recruiters and job seekers alike begin to experiment with – or even master – these tools, it’s worth asking before they become fully entrenched.?
Read the full article here .
What does this mean for recruiters??
Recruiters are encouraged to leverage automated responses for efficient communication and employ positive emotional language. In the end, recognizing the decisive role of personal meetings and the growing importance of meta-competencies becomes paramount in optimizing the recruitment process.?
UK’s GDP Growth Looks Nice on the Surface?
Bloomberg recently reported some good news that should cheer our readers in the United Kingdom: the U.K.’s position in international economic rankings is looking to remain stable in the coming years. What does this mean exactly? While other advanced economies are beginning to experience the adverse effects of years of low birth rates and fall in the economic rankings, the U.K. is expected to retain the number six spot. While this is certainly good news, the bad news is that the U.K.’s growth over the last decade is the result of population growth for the most part, while incomes have stagnated. Under previous decades’ trends, labor productivity would be more than 10% higher. That lack of productivity growth has been extremely costly for workers. Average real wages in the U.K. are not much higher than they were in 2006, meaning that we are closing in on the second decade of wage stagnation. If the U.K. economy keeps pace in the world’s ranking, it will be due to population growth, rather than material growth for the country’s workers.?
Read the full article here .
What does this mean for recruiters??
From its growth and world economic rankings, the outlook in the United Kingdom looks good. But the workers within the country are actually hurting from a productivity and wage stagnation. Despite the standing,? the country’s problems are many and it risks falling further behind the likes of Germany and France if the productivity problem is not addressed. Recruiters are likely feeling those challenges on the daily.?
New Year, New Problems for Canada’s Economy
Usually, the new year brings in a renewed sense of optimism and excitement. For those watching Canada’s economy at the start of 2024, that might not be the case. The labor market was effectively changed by a rounding error last month, adding just 100 jobs! The slipping demand for workers over the past three months is a signal of stormy clouds ahead, dampening the positivity for 2024. What could be driving this slumping job market? Looking at the job vacancy rate (ratio of openings compared to total employment), demand has cooled for most major sectors. Manufacturing, which peaked just above 5% in 2022, has more than halved – down to 2.4% last quarter. Retail trade, transportation and warehousing declined similarly. Employers are simply looking to hire less, which reduces new opportunities for both the employed and unemployed.??
Read the full article here .
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What does this mean for recruiters?
The Canadian economy’s labor market is experiencing a significant slowdown, presenting a challenging landscape for recruiters in 2024. Meager job growth and a cooling job vacancy rate across major sectors indicate reduced hiring needs.??
Recruiting Tips:?
Interested in learning more about the impact of AI on recruitment? You can check out our webinar from last year , along with the follow-up blog with questions from our viewers . At Appcast, we’re cautiously excited about the opportunities for efficiency that the new technology could bring to the recruitment industry, but we encourage you to do research and determine how it works best for your recruiting team.
Recently on Recruitonomics:
In December, the U.S. labor market added 216,000 net new jobs. The unemployment rate remained unchanged at 3.7%. Another month of stable gains reminds us that the labor market remains resilient and is further evidence of a soft landing for the Federal Reserve. While the labor market is not flashing red under the pressure of rising interest rates, it has certainly moved to beige – stable, but boring. Nonfarm payroll gains have slowed in 2023 but a spike this month continues the strong momentum as we move into a new year. The definition of spike has shifted in the past two years, though: In 2022, that meant several hundred thousand more jobs were added than the month before. Now, as we move into beige territory, that means just a couple tens of thousands more.?
Read the full article here .
What Recruitonomics is Reading:
Many Americans have a distorted view of the current economic situation. While the fundamentals are strong (GDP growing, employment steady and high, wages growing, inflation slowing), consumer sentiment has fallen to levels akin to those seen during the 2007 financial crisis. Why are Americans so negative about the economy? There are several explanations. Some believe Americans have focused on the negative parts of the economy (though they are few, they are very prevalent, such as high prices and unaffordable housing). Others believe Americans feel so unhappy about non-economic issues – like wars in the Middle East and Ukraine, crime, political divides – that it is seeping into their perception of the economy. Still others place the blame on negative biased news sources peddling exaggerations at best and misinformation at worst. Researchers at the Brookings Institute looked into the final explanation, and created a model that supports that news has become more negative since 2018, and very much more negative since 2020. The average American is digesting economic news that is systemically more negative than it was just five years ago. Read the full report from Brookings to learn more. ? ?
?More Data & Insights:
Thank you for reading! Stay tuned for next week's Recruitonomics Newsletter and check out Recruitonomics.com for more data-driven insights.