Having more candidates apply to your organization means having a larger talent pool, giving you the advantage of choosing suitable and reliable applicants that will boost your company’s growth. 

But what is causing this change, and how do these reasons influence the job market? The answer is Artificial Intelligence or AI. 

What Do People Think About AI Integration in Hiring? 

According to Jobscan, 97.4 percent of Fortune 500 companies use an Applicant Tracking System (ATS), an AI-powered tool.¹ 

Even though companies find these tools useful in the hiring process, some are skeptical of it. According to the Pew Research Center, 41 percent of US adults oppose using AI to review job applications.² Meanwhile, 71 percent are against the use of AI in making the final hiring decision. 

Leveraging AI: How Applicants Utilize Modern Tools 

Even though some job applicants may not like that employers are using AI-powered tools in the screening process, job applicants themselves are using AI to their advantage. Let’s have a look at the influences of AI in the job market. 

1. AI creates resumes and cover letters faster. 

Previously, candidates had to do all the research for new roles they were eyeing. They also had to create their resumes and cover letters from scratch. With AI’s existence, their experience in creating resumes and cover letters has become much more efficient. Smart algorithms review job descriptions, giving personalized suggestions and improving keyword use for better visibility.  

Natural Language Processing (NLP), a machine learning technology that comprehends human language, can guarantee precise and effective writing. Templates and formatting are adjusted automatically, saving time and ensuring a polished look.  

AI tools can also provide quick feedback, spotting areas to improve and making customization easier. This automation speeds up resume writing and gives individuals the tools to create impressive, personalized documents, improving their chances in the tough job market. 

Related Article: 13 Essential Traits to Look for When Hiring Top Tech Talent 

2. Faster job application with AI-powered autofill function. 

Job applicants no longer have to type or write every detail on job applications on their own. Autofill tools driven by AI are transforming how job applications are filled out, making the process much faster.  

These sophisticated tools use machine learning to analyze and input necessary information into application forms quickly. By identifying patterns and common data points, autofill removes the need for manual data entry, saving applicants time and effort. This speeds up the application process, reducing errors and ensuring accuracy. Job seekers experience improved efficiency, allowing them to apply to multiple positions more smoothly and enhancing their overall job market navigation experience. 

Related Article: 8 Must-Know AI Platforms Every Office Administrator Should Explore in 2024 

3. Candidates are applying for new roles due to newly acquired skills. 

Due to the rise of AI, candidates have gained new skills and tools to showcase. This gave applicants more confidence to apply for job openings they had never considered. It is also becoming a challenge for some to keep their jobs as some occupations are shrinking due to AI. McKinsey’s findings suggest that by 2030, an estimated 12 million occupational transitions may be necessary.³

As individuals shift from various roles, there’s potential for the economy to open new opportunities for growth and expansion. Due to the changes in the economy both high-paying jobs and low-paying jobs will require learning additional skills to become more successful in their careers, creating a more skilled workforce in the future. 

Other Factors Affecting Applicant Surge 

Aside from candidates utilizing AI in job applications, other events and factors affect this surge. 

1. There is an increase in layoffs in 2023. 

According to Challenger, Gray, and Christmas, in 2023, US-based companies announced more than 700,000 job cuts, indicating a substantial 98 percent increase from the previous year.⁴ The year featured notable job reduction in tech, with major players like Meta and Amazon implementing layoffs.  

While these companies initially expanded during the early phases of the pandemic, they later opted to reduce their workforce due to high labor costs. The economic downturn made them extremely cautious, and they decided to cut costs. 

2. Companies are hiring slower. 

According to LinkedIn’s 2023 Workforce Report, companies across all industries in the US reduced their hiring efforts by 29.2 percent over the past year for various reasons.⁵  

Economic Uncertainty  

Companies are more cautious as they’re unsure about the economy’s direction. Due to recent economic downturns, it’s hard to predict what will happen in the next few years.  

Labor Market Shifts 

The labor market experienced significant changes in recent years with the rise of remote work, gig economy, and other non-traditional employment opportunities. This also changes how companies look for talent and the skills each role requires from candidates.  

Read More: Exploring 2023 Remote Work Trends and Insights: Where Are We Now? 

Changes in Workforce Demands 

Technology is changing business models and workforce requirements. This means employers are now looking for different skill sets and expertise, making it challenging to find the right candidates. 

3. New AI integrations require new roles. 

As organizations integrate AI into their operations, their needs and processes change, requiring different, specialized skill sets to help their business function. This has led to the creation of new roles in the market that attract candidates with newly acquired AI-related skills. These jobs may include AI Developer, AI Engineer, AI Content Writer, and Machine Learning Engineer. 

4. AI-powered tools make the recruitment process more efficient. 

Hiring managers used to screen resumes on their own manually. This can take up so much time that they can instead allot to building relationships with the right group of candidates. 

AI recruitment software programs make the hiring process faster and more efficient, allowing hiring managers and human resources professionals to process more applications than they could previously handle. This may make it seem like you are receiving more applications than before. 

MAKE HIRING MORE MANAGEABLE BY PARTNERING WITH ACS PROFESSIONAL STAFFING 

Are you still overwhelmed by the number of applications you receive? There’s still one more thing you can do: partner with a staffing firm and leverage our expertise, allowing you to focus on other vital parts of the business. 

Trust ACS Professional Staffing to find the best candidates for your organization. Our services include Professional Placement, Temporary/Contingent Staffing, and Payroll Services. 

Contact us today and start finding qualified and talented people. 

References 

1. Myers, Sydney. “2023 Applicant Tracking System (ATS) Usage Report: Key Shifts and Strategies for Job Seekers.” Jobscan, 2 Oct. 2023, www.jobscan.co/fortune-500-use-applicant-tracking-systems. 

2. Rainie, Lee, et al. “Ai in hiring and evaluating workers: what Americans think.” Pew Research Center, 20 Apr. 2023, www.pewresearch.org/americans-views-on-use-of-ai-in-hiring. 

3. Ellingrud, Kweilin. “Generative AI and the Future of Work in America.” McKinsey & Company, 26 Jul. 2023, www.mckinsey.com/generative-ai-and-the-future-of-work-in-america. 

4.  “THE CHALLENGER REPORT December 2023.” Challenger, Gray & Christmas, Inc., 4 Jan. 2024, www.challengergray.com/december-2023-challenger-report-job-cuts-fall-to-second-lowest-monthly-total-of-the-year-job-cuts-steady-as-hiring-plummets. 

5. “Workforce Report April 2023.” LinkedIn, 6 Apr. 2023, economicgraph.linkedin.com/linkedin-workforce-report-april-2023. 

6. Richardson, Nela. “MainStreet Macro: The Big Quit Is Over. Here Comes the Big Stay.” ADP, 8 May 2023, www.adpri.org/mainstreet-macro-the-big-quit-is-over-here-comes-the-big-stay/.