NEW YORK and DENVER, Feb. 09, 2023 (GLOBE NEWSWIRE) -- PandoLogic, a wholly owned subsidiary of Veritone, Inc. (NASDAQ: VERI) and a leading provider of artificial intelligence (AI) hiring solutions, today announced the availability of its latest Labor Markets Insights Report, which analyzes the second half of 2022 and proposes potential trajectories for 2023. Developed in conjunction with the Center for Business and Economic Analysis (CBEA) of the Donald J. Schneider School of Business and Economics at St. Norbert College, the report examines the labor market amid a period of persistent inflationary pressure and negative GDP growth as well as increased layoffs in certain sectors.
PandoLogic’s latest research helps talent acquisition and HR professionals make sense of the changes experienced in the second half of 2022. The study takes a comprehensive look at the factors at play and how an economic slowdown may impact the overall cost of recruitment, including cost-per-click (CPC), conversion rate (CVR) and cost-per-applicant (CPA) metrics.
Select findings from the report include:
- While unemployment rates are still low relative to historical standards, 27 states saw a decline in employment levels in Q3 2022, compared to only one state in Q2 2022. Unemployment rates are highest in the West Coast, Mid-East Atlantic and Great Lakes regions.
- Despite high-profile layoffs, employment in the tech industry continued to grow in late 2022, albeit at a slower rate. That said, the tech industry is historically sensitive to downturns. Employment in the sector fell by 9 percent in six months at the start of the Great Recession in 2008 and 7 percent in six months at the outset of Covid-19.
- Wage growth was higher at the close of 2022 than at any other point in the last 20 years but was outpaced by inflation. As of November 2022, there was a sizable 6.2 percent year-over-year increase in wages; however, with the overall inflation rate at 7.1 percent, the average worker experienced lower spending power.
- The core recruitment metrics of CPC and CPA increased in the latter half of 2022 due to tightness in the labor market, coupled with historically low unemployment. At the same time, CVR continued its slight decline from a two-year high noted in June of 2022, with the rate falling from 10.4 percent to 9.3 percent, still up from the 8 percent CVR seen in January 2022.
- Slowing growth rates, declining business investment and declining job postings suggest that labor demand is softening, easing the competitive burden on recruiters in the interim and creating the opportunity to build a steady foundation to equip their teams to navigate the terrain.
On behalf of CBEA, Marc Schaffer, Ph.D., professor of Economics & Data Analytics at St. Norbert College, shared, "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."
Terry Baker, president and CEO of PandoLogic, stated, “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.”
The PandoLogic Labor Markets Insights Report is complimentary and available for download here.
About PandoLogic
PandoLogic is the leading recruitment marketing and conversational AI platform in North America. Serving the world’s most recognizable brands, PandoLogic utilizes advanced AI technology to transform the future of recruiting. PandoLogic’s flagship product, pandoIQ, is an AI-enabled talent acquisition platform that empowers employers to reach the right candidates on the right sites for the right price. Making more than 7,000 micro-decisions per minute, pandoIQ automates and optimizes the complexities of job placements at scale and precision levels previously unattainable.
PandoLogic is a wholly owned subsidiary of Veritone, Inc. (NASDAQ: VERI), a leader in enterprise artificial intelligence. To learn more, visit PandoLogic.com.
About Veritone
Veritone (NASDAQ: VERI) is a leader in enterprise artificial intelligence (AI) software and solutions. Serving organizations in both commercial and regulated sectors, Veritone’s software, services, and industry applications accelerate and maximize digital migration, empowering the largest and most recognizable brands in the world to run more efficiently, accelerate decision making and increase profitability. Veritone’s hyper-expansive Enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models to transform audio, video and other data sources into actionable intelligence. Through professional and managed services, as well as its robust partner ecosystem, Veritone develops and builds AI solutions that solve the problems of today and tomorrow.
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