The increase in candidates has coincided with caution among employers about hiring, explained Derek Mackenzie, CEO of recruitment agency Investigo, which is part of The IN Group.
Speaking to HR magazine, he said: “With the increase in the number of jobseekers per vacancy, there are several factors that come into play like economic shifts and changes in workplace expectations post pandemic which makes employers more cautious about hiring, resulting in fewer vacancies.”
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The number of vacancies declined by 0.5% from July to August 2024, data published today (30 September) has shown. The proportion was down by 17.46% from the same time in 2023.
Employers’ hiring caution could be explained by a decline in the quality of job applications, Mackenzie suggested.
He continued: “The evolving AI landscape plays a huge role in streamlining the job application process, like speeding up the hiring process.
“Candidates are able to apply for multiple roles quickly and use AI-powered tools to match keywords to their job descriptions, however it runs the risk of less personalised applications as jobseekers rely heavily on automation, lowering the overall standard.”
Research by HR software Ciphr, published on 26 September, found that one in four (26%) UK employees were looking for a new job this year due to the cost of living crisis. This was most common among Gen Z (aged 18 to 24), who are likely to be the lowest paid due to being at the beginning of their careers, the research suggested, and Millennial workers (aged 25 to 42).
At the same time, March 2024 research by Hays showed that more than a quarter (28%) of UK workers aged 25 to 29 had used AI while applying for a new role, as opposed to 18% of all professionals.
The same research also showed that 4% of UK employers currently use AI tools to evaluate job applications, but 16% of employers predicted they would increase their use of AI during recruitment in the future.
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Using AI could help employers cut down recruitment times, while also finding the best candidates for the job, suggested Ben Keighley, co-founder of AI recruitment platform, Gaia.
“Forward-thinking employers are also using AI to stay ahead of the curve by running highly targeted campaigns, driven by machine learning,” he told HR magazine.
“With access to millions of data points, they can reach and, importantly, attract new candidates to roles perfectly suited to them that they otherwise would have been unaware of.
“This enhances their ability to adjust recruitment strategies on the fly and assess campaign performance in real time.
“Ultimately, AI is solving some of the biggest challenges across the recruitment ecosystem for employers and candidates alike.”
Employers should ensure they balance AI and human input during recruitment, however, Mackenzie warned.
“There's no doubt that the rise in applicants per vacancy introduces a more competitive hiring landscape for businesses, yet there may be challenges in identifying the right talent for the role.
“While relying on AI in the screening process can help manage this influx, organisations need to make sure they balance the use of AI with human oversight, to ensure they aren’t missing out on top talent to drive forward digital transformation.”
