AI has devastated the labor market: both job seekers and employers will suffer

Artificial Intelligence in Recruiting: From Promises to Reality

Modern AI systems that were supposed to make job searching easier and fairer often end up making it even more confusing. As *The Atlantic* writes, chatbots help applicants quickly create “ideal” resumes, but employers lose time and the chance to truly evaluate candidates.

1. Observed Paradox
* The application situation – candidates submit hundreds of responses to vacancies but almost never receive a reply.
* Excessive resumes – companies receive thousands of documents daily and barely manage to respond.

These phenomena make the hiring process resemble dating sites: applications lose individuality, the market is saturated with similar offers, and the number of fraudulent applications rises. Instead of simplifying job searching, AI has turned it into a “battle” between different systems.

2. Resumes as Commodity
Chatbots turn resumes and cover letters into standardized products:
* Candidates use them to improve style and craft concise achievement summaries.
* As a result, average document quality increases, but they become uniform—identical keywords, flashy action verbs, “compressed” information.

In Silicon Valley this is called the *signal collapse*. Previously, resumes contained many unique signals (formatting errors, unusual indentations, honest admissions) that HR professionals could use for assessment. Now these “signals” disappear, and recruiters must wrestle with a cacophony of identical applications.

3. AI Time – Twofold
* For applicants
* Reduces application writing time.
* Allows sending hundreds of responses but almost no feedback on strengths and weaknesses.
* For employers
* Four out of five companies use AI to scan resumes; one in five even for conducting interviews.
* Candidates increasingly receive rejections at every company they apply to. Hiring decisions become more uniform.

4. Emergence of New Problems
* Discrimination – algorithms sometimes exhibit racial or ethnic bias.
* Deception by candidates – attempts to use AI to deceive employers are growing to a “ridiculous” level.
* Process slowdown – recruiters must scrutinize applications and biographical data more carefully.

Some companies introduce mandatory personal interviews, extend probation periods, and rely on alumni network referrals. But even such measures do not eliminate the risk of a “stubborn” labor market: turnover rises, managers fire unsuitable employees, and talented people with unconventional thinking may leave.

5. Conclusion
AI in recruiting promised to simplify and make job searching more fair, but in practice it has led to:
* Simplified yet less informative resumes.
* Overload for employers with a flood of identical applications.
* New forms of discrimination and deception.

To restore balance, companies are forced to return to more traditional evaluation methods: personal interviews, reference checks, and deep resume analysis. Until AI can fully replace the human factor, recruiting will remain a complex task requiring a blend of technology and professional expertise.