Source: Fortune
Summary
Indeed CEO Hisayuki Idekoba described the current hiring process as a “vicious cycle,” citing an influx of applications and difficulty identifying qualified candidates. Job openings have slowed, while applicants have increased, leading to frustration on both sides. Employers face challenges with AI-generated applications and scams, including fake North Korean IT workers. Recruiters are using AI to manage the workload, but the system remains strained. Daniel Chait of Greenhouse noted that both job seekers and employers are unhappy, with application numbers rising 111% since 2022 and recruiters declining 56%.
Our Reading
The numbers tell one story.
Job seekers face long waits with no response.
Employers struggle with fake applications and too many candidates.
AI is used to manage the workload but makes the system worse.
The hiring process is broken, but no one has the fix.
Author: Evan Null
AI is making the hiring process ‘worse,’ CEO says
Indeed’s CEO, Hisayuki Idekoba, has called the current hiring process a “vicious cycle,” highlighting the growing challenges faced by both job seekers and employers. With job openings slowing and the number of applicants rising, the system is under strain. Employers are struggling to identify legitimate candidates, as AI-generated applications and scams, including those involving North Korean IT workers, complicate the process. Recruiters are turning to AI to manage the workload, but this has not solved the problem.
Getting hired often takes more than just applying
Applying for a job is no longer enough, as networking and internal advocates play a critical role in securing employment. Business professor Scott Galloway emphasized that having an internal advocate can make the difference between being considered and being hired. He noted that many companies limit their initial candidate pool and often select someone with a recommendation. Sanjay Beri, CEO of Netskope, echoed this advice, saying that building relationships can lead to job opportunities that are never publicly posted.
Recruiters are overwhelmed, but AI is not the answer
Despite the rise in AI tools, the hiring process remains inefficient. Daniel Chait of Greenhouse called the situation a “doom loop,” where both job seekers and employers use AI to solve their own problems, but the system continues to deteriorate. The number of applications per job has risen 111% since 2022, while the number of recruiters has dropped 56%. This imbalance has created a situation where both sides are frustrated, and no clear solution has emerged.
Job seekers are using AI to improve their chances
Job seekers are also turning to AI to enhance their applications, tailoring resumes and writing cover letters to stand out. This has added another layer of complexity to an already strained system. While AI can help with some tasks, it has not resolved the underlying issues of mismatched candidates and overwhelmed recruiters. The result is a process that is more complicated and less effective than before.
The future of hiring is uncertain
Indeed’s CEO hopes that AI will eventually automate many of the manual tasks in hiring, allowing recruiters to focus on building relationships. However, the current system is not working for either side. With no easy fix in sight, the hiring process remains a challenge for both job seekers and employers. As AI continues to evolve, it remains to be seen whether it will improve the system or make it worse.
