Evan Sohn, CEO of Aura and Chairman of Recruiter.com, recently appeared live on CNBC to provide valuable insights into the current job market and recruiter sentiment, which reached its lowest point in 18 months.
The discussion comes as the labor market shows signs of slowing, and recruiters' roles become even more crucial in navigating this evolving landscape.
During his appearance, Sohn highlighted that recruiter sentiment has dropped to an average of 2.6 out of 5, indicating significant challenges facing talent acquisition professionals. This is the lowest recruiter sentiment seen in the past 18 months, reflecting the decreasing number of job openings and the reduced workloads that recruiters are experiencing. As a result, the hiring process has become more challenging, with recruiters feeling the pressure of a tightening labor market.
Sohn referenced key findings from the Recruiter Index survey, emphasizing how HR professionals and recruiters have reported declining job postings and a shrinking applicant pool. In addition, 92% of candidates currently being approached by recruiters are already employed, making it even harder to fill roles. This speaks to a broader issue within the market: fewer candidates are willing to quit their jobs, further exacerbating the hiring difficulties recruiters face.
Sohn pointed out that the JOLTS (Job Openings and Labor Turnover) report further underscores the slowing labor market, with job openings down year over year, as well as the quits rate. This trend reveals a more stagnant workforce where fewer individuals seek new opportunities, adding to the complexities that talent acquisition professionals must navigate.
Graph - Aura's Hiring Trend Report Shows Declining Job Postings
Recruiters are particularly affected by the reduced movement in the job market. The challenge of attracting the right candidates with competitive compensation is growing, leading companies to adjust their approaches to remain competitive in this environment. This has also sparked an increase in remote work offerings as companies look for ways to attract top talent without necessarily increasing salaries.
While the overall number of job postings is down by 9%, there are still active industries where hiring occurs. According to Sohn, healthcare services remain a robust sector for job opportunities, while government jobs hold steady, though also slightly down. Specific job markets are growing in specialized tech skills areas. The demand for roles within the artificial intelligence (AI) sector is surging, with over 6% of all tech jobs now related to AI. This points to a growing interest in skills related to AI as a key driver for future job growth.
Moreover, the demand for remote positions is increasing, as remote jobs account for about 6% of open roles. This trend allows companies to attract talent without necessarily offering higher compensation, providing flexibility as a key selling point.
Looking ahead, Sohn expressed concerns about the labor market's long-term outlook. The decline in job postings and fewer people leaving their current roles could signal a labor market contraction.
In closing, Evan Sohn’s CNBC appearance highlighted the key trends in the labor market and provided valuable insights for companies, recruiters, and HR professionals. As the job market evolves and the value of human labor rises, companies must find innovative ways to adapt to this increasingly competitive environment.
As companies face mounting challenges in the evolving labor market, tools like Aura's workforce analytics platform have become essential for making data-driven decisions. Aura, founded by Bain & Company and now a leader in workforce insights, provides businesses with a comprehensive view of workforce dynamics. With over 1 billion data points and real-time analytics, Aura helps organizations understand hiring trends, attrition rates, and talent supply in key industries.
By leveraging Aura’s advanced AI-driven platform, companies can benchmark workforce composition, uncover value drivers, and optimize the hiring process. This actionable data allows businesses to navigate labor market shifts and evaluate strategic business projects or investments.
As the future of the job market remains uncertain, Aura is a resource for companies looking to stay competitive, adapt to changing market conditions, and make informed decisions.