Source: Fortune
Summary
The Federal Reserve Bank of New York’s data shows that Americans are less optimistic about finding work than they were in 2020, with the average American worker believing they have a 45% chance of securing a new role within three months if they were to quit their job today. Despite a recent jobs report showing 178,000 new roles in March and unemployment edging down to 4.3%, the labor market remains stagnant, with hiring in February dipping to its lowest level since April 2020. Workers are concerned about the impact of AI on job prospects, and many are “job-hugging” or hiring “reverse recruiters” due to fear of not being able to find a new gig.
Our Reading
The numbers tell one story. Mark Zandi, Moody’s Analytics chief economist, described the March job numbers as a mirage. The labor market has remained stagnant, buoyed only by health care gains. Workers are right to think the job market is as bad as during the pandemic. The effects of AI are marginal but not insignificant, especially for entry-level workers. Amid the myriad economic forces contributing to the “low hire, low fire” labor market, many workers are “job-hugging” or hiring “reverse recruiters” due to fear of not being able to find a new gig. Today, more than half of U.S. job seekers are spending six months or more shooting out résumés into the void of applicant tracking systems.
The job market is frozen in fear, and the AI-powered application process is only making it worse.
Author: Evan Null
