Proprietary research provides critical recruitment data to employers, allowing them to navigate the current uncertainty.
PandoLogic, a wholly owned subsidiary of Veritone, Inc. and a leading supplier of artificial intelligence (AI) recruiting solutions, has released its newest Labor Markets Insights Report, which examines the second half of 2022 and forecasts probable trajectories for 2023. The paper, created in collaboration with the Donald J. Schneider School of Business and Economics at St. Norbert College, evaluates the labor market in the midst of prolonged inflationary pressure, negative GDP growth, and rising layoffs in specific industries.
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PandoLogic’s most recent study assists talent acquisition and HR professionals in making sense of the developments that will occur in the second half of 2022. The study examines the elements at play and how a slowing economy may affect the total cost of recruiting, including cost-per-click (CPC), conversion rate (CVR), and cost-per-applicant (CPA) measures.
Among the report’s key conclusions are:
- Although unemployment rates remain low by historical standards, employment levels fell in 27 states in Q3 2022, compared to only one state in Q2 2022. The West Coast, Mid-East Atlantic, and Great Lakes areas have the highest unemployment rates.
- Despite high-profile layoffs, employment in the tech industry grew at a slower rate in late 2022. However, the technology industry has historically been vulnerable to downturns. Employment in the industry declined by 9% in six months at the commencement of the Great Recession in 2008, and by 7% at the start of Covid-19.
- Wage inflation was stronger by the end of 2022 than it had been in the previous 20 years, but it was exceeded by inflation. Wages increased by 6.2 percent year over year in November 2022; but, with total inflation at 7.1 percent, the average worker’s purchasing power decreased.
- Due to labor market tightness and historically low unemployment, the core recruiting metrics of CPC and CPA grew in the later part of 2022. At the same time, CVR maintained its minor slide from a two-year high in June 2022, decreasing from 10.4 percent to 9.3 percent, but remaining higher than the 8 percent CVR observed in January 2022.
- Decelerating growth rates, dropping corporate investment, and declining job listings indicate that labor demand is lessening, relieving the competitive strain on recruiters in the meantime and offering a chance to establish a consistent foundation to equip their teams to negotiate the terrain.
“While the recession conversation is top of mind in 2023 for the broader economy, the labor market continues to demonstrate its resilience.” “Though there are signs of cooling, the labor market continues to remain tight into the new year.” Marc Schaffer, Ph.D., professor of Economics & Data Analytics at St. Norbert College, spoke on behalf of CBEA.
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Terry Baker, president, and CEO of PandoLogic said, “Since introducing our Labor Market Insights Report last year, it’s clear that the market has shifted dramatically.” “However, in addition to the headline-catching changes, employers still need access to key data and resources to help solve the nuances involved in recruiting, including remote work, pay transparency, and the support of DE&I initiatives. What’s happening in one industry isn’t necessarily happening in all industries.” “The same goes for geography, candidate demographics, and other key factors that technologies like PandoLogic understand and account for under various conditions and use to optimize hiring results and reduce costs.”
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